Delhi High Court admits petition questioning Validity of provisions in Finance Act 2022 which overruled landmark Judgment of Supreme Court in Canon India case

On 07.04.2022, the Delhi High Court admitted a petition challenging validity of provisions contained in the Finance Act 2022 to overrule the judgment of Supreme Court in Canon India case.  The Supreme Court of India held in Canon India case  that the DRI officers are not empowered to issue Show Cause Notices proposing demand and recover of Customs Duty.  The government was likely to lose a huge revenue running into thousands of crores, apart from discharge of accused in cases of smuggling of contrabands like narcotics, arms and ammunitions etc.  Therefore, the government incorporated provisions in the Finance Act 2022 to validate the Show Cause Notices issued by officers of DRI.

The constitutional validity of these provisions was challenged before Delhi High Court. Counsel of the petitioner Mr. Bharat Bhushan, argued that though it is open to the Legislature to amend the act retrospectively to make judgment of Court ineffective, but it is not open to the Legislature to say straightway that a judgement of a court shall be deemed to be ineffective and the interpretation of law shall be otherwise than as declared by the Court.   Acting Chief Justice and Justice Naveen Chawla, found force in the arguments of petitioner and issued Notice to Union of India.

The matter is before Acting Chief Justice Vipin Sanghi and Justice Naveen Chawla.

Advocates Bharat Bhushan and Nidhi Gupta are appearing on behalf of Petitioner.

For Copy of Petition click here