In Brief
Canon India and three other camera importers challenged the denial of exemption from basic customs duty by the Directorate of Revenue Intelligence (DRI). Cameras had been initially cleared by the Customs Appraising Officer as exempt under Notification 15/2012. The DRI later issued recovery notices claiming wilful mis-statement. The Supreme Court held that only the original assessing officer (or successor) can initiate recovery proceedings under Section 28(4) of the Customs Act. The DRI, though appointing its officers as Commissioners, lacked valid entrustment of assessment-related functions. The notification purporting to grant such functions was invalid. Consequently, the DRI's recovery proceedings were set aside as ultra vires. The goods stood validly cleared.
The lawyer headnote and full judgment text are available to registered users.