Case Details: Manish Chopra Versus Principal Additional Director General, Directorate of Revenue Intelligence (Headquarters) New Delhi, (2025) 31 Centax 410 (Del.)
Judiciary and Counsel Details
- Prathiba M. Singh & Rajneesh Kumar Gupta, JJ.
- S/ShriChinmaya Seth, A.K. Seth, Ms Palak Mathur & Varun Phore, Advs., for the Petitioner.
- S/Shri Harpreet Singh, Senior Standing Counsel, Ms Suhani Mathur, Jai Ahuja, Advs., for the Respondent.
Facts of the Case
The petitioner is engaged in the business of importing and trading electronic goods and accessories. Pursuant to an investigation by the Directorate of Revenue Intelligence (DRI), a search was conducted at the petitioner’s premises, during which cash was seized under Section 110 read with Section 121 of the Customs Act, 1962. The department alleged that the petitioner had grossly undervalued imported goods, leading to substantial evasion of customs duty. However, no show cause notice was issued in respect of the alleged undervaluation, which was the main basis for the department’s action. Only a notice under Section 121 was issued for confiscation of the seized cash. The petitioner challenged the seizure on the ground that no nexus had been established between the alleged undervaluation and the seized amount.
High Court Held
The Hon’ble Delhi High Court held that proceedings under Section 121 were incomplete without issuing a show cause notice on the alleged undervaluation. Referring to Euroasia Global, the Court emphasised that undervaluation must be adjudicated separately, and confiscation of proceeds cannot be presumed without such determination. The department was directed to issue a show cause notice within the statutory time limit and to adjudicate it along with the existing notice under Section 121. As an interim arrangement, invoking principles akin to pre-deposit under Section 129E, the Court permitted retention of a part of the seized amount and directed refund of the balance to the petitioner, subject to an undertaking to pay any duty assessed. The writ petition was disposed of accordingly.
List of Cases Cited
- Commissioner v. Euroasia Global — 2022 (379) E.L.T. A143 (S.C.) — Referred [Para 7]
- Euroasia Global v. Commissioner — 2008 (221) E.L.T. 34 (Del.) — Referred [Para 6]
