Rakesh Kumar Mangala Vs Commissioner of Customs Export & Ors. (Delhi High Court)
In a significant ruling, the Delhi High Court has quashed a show cause notice issued by the Directorate of Revenue Intelligence (DRI) in 2012 and the subsequent demand order (Order-in-Original) passed by the Commissioner of Customs in 2024 against petitioners, including Rakesh Kumar Mangala. The court’s decision hinged on the principle that if the foundation of a case, the show cause notice, is found to be unsustainable, the subsequent order based on it cannot stand.
The case, titled Rakesh Kumar Mangala Vs Commissioner of Customs Export & Ors., was heard by the Delhi High Court via hybrid mode. The petitioners had approached the court under Articles 226 and 227 of the Constitution of India, challenging the Order-in-Original dated March 26, 2024, issued by the Commissioner of Customs, Inland Container Depot (Export), Tughlakabad, New Delhi, and the Show Cause Notice dated June 20, 2012, issued by the Additional Director General, DRI, Delhi Zonal Unit.
According to the factual background presented in the judgment, the DRI initiated action based on intelligence suggesting misdeclaration and undervaluation in the import of goods described as rubber compound, un-vulcanized rubber compound, and nylon cords. The intelligence pointed towards two entities, M/s. Y.K. Rubber and M/s Hashmi Imports (P) Ltd., believed to be controlled by an individual named Mr. Rafique.
