Quick Summary
On Thursday, the Supreme Court of India reinstated tax notices worth an estimated ₹20,000-23,000 crore issued by the Directorate of Revenue Intelligence (DRI) to several major corporations, including Vedanta Ltd, Vodafone Idea Ltd, Adani Enterprises, and Indian subsidiaries of Sony, Samsung, and Canon. These notices, pending since 2006, were revived following a ruling that affirmed the DRIs authority to issue show-cause notices under Section 28 of the Customs Act. A three-judge bench, comprisin
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FAQ :
The Supreme Court has revived tax notices worth an estimated ₹20,000 to ₹23,000 crore.
The ruling affects several major corporations, including Vedanta Ltd, Vodafone Idea Ltd, Adani Enterprises, and the Indian subsidiaries of Sony, Samsung, and Canon.
The Supreme Court's latest ruling overturns a 2021 judgment that stated DRI officers were not the 'proper officers' to conduct customs investigations, which had led to the quashing of many tax notices.
The ruling confirms that DRI officers are empowered as 'proper officers' under the Customs Act, authorising them to issue show-cause notices, collect unpaid duties, and reclaim erroneous refunds.
These notices have been pending since 2006, meaning they are part of cases that have been in legal limbo for approximately 18 years.
The decision allows the DRI to pursue significant pending tax recovery cases, potentially leading to fresh recovery actions against companies and impacting future customs litigation.
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