DRI

Investigating Agency: DRI [Directorate of Revenue Intelligence]: Since 1957, under Customs Act, 1962

DRI Link: http://www.dri.nic.in/

The Directorate of Revenue Intelligence is the apex intelligence and investigative agency for matters relating to violation of the Customs Act. Its remit includes:

Jurisdiction of DRI:

· Smuggling- Anti-smuggling of- Gold- Narcotics/drugs- Foreign currency- Counterfeit/ Fake Currency- Arms and Ammunition- Electronic goods like I-pads, I-phone, tablets, memory cards.

· Commercial Frauds- Over and Under-Invoicing of Goods and Services, Multiple Invoicing of Goods and Services- Over and Under-Shipments of Goods and Services, Falsely Described Goods and Services- Trade Based Money Laundering [TBML]- disguising the proceeds of crime and moving value through the use of trade transactions in an attempt to legitimize their illicit origins- transferring / moving money through trade transactions- misrepresentation of the price, quantity or quality of imports or exports.

· Mis-declaration [Tax Evasion Cases]- to avoid payment of Customs duties including CVD, Anti-Dumping duty, etc. and also to circumvent non-tariff barriers.

· Under-invoicing & Undervaluation [Tax Evasion Cases]- by way of presenting forged or false documents to the Customs authorities, showing and supporting suppressed values- Non-inclusion of allied cost components in the assessable value by making partially correct declarations at the time of filing bills of entry- Undervaluation of items like Plants and Machinery, Consumer goods, Computer Parts and Accessories, Motor vehicle parts and accessories and Artificial Leather cloth, have been detected.

· Misuse of End Use and Other Notifications [Tax Evasion Cases]- Misuse of Exemption Notifications, to specific sectors or groups, by mis-declaration whether in declaration of the eligibility criteria, description of goods or end-use or post import conditions.

· Misuse of Foreign /Preferential Trade Agreement (FTA/PTA) [Tax Evasion Cases]- Misuse of tariff and/or non-tariff benefits under bilateral and multilateral trade agreements with other countries.

· Misuse of Importer Exporter Code (IEC) [Tax Evasion Cases]- It is mandatory for every importer/exporter to obtain an IEC- Use of IECs are used to carry out dubious transactions- The Importer Exporter Code number (IEC) is a unique ten-digit number allotted by the Directorate General of Foreign Trade (DGFT) and is linked with the PAN number- Obtaining of IEC by misrepresentation of facts or by using genuine IECs fraudulently by third parties without the knowledge or consent of the actual IEC holder or by “lending” out for use, by the actual IEC holder to a third party.

· Non-fiscal enforcements- Crime against environment- Crime related to trans-boundary movements of Hazardous Wastes and their Disposal, the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES)- the Prohibition of the Development, Production, Stockpiling and Use of Chemical Weapons and their Destruction (CWC)- Violation of multilateral agreements that regulate the cross-border movements of many substances and products in the form of import and export thereof.

Related Foras & Competent Authorities:

· Department of Revenue, Ministry of Finance, Government of India.

· Central Board of Indirect Taxes Customs (CBIC)

· Directorate of Revenue Intelligence (DRI)- It is the apex agency of the Indian Customs in the field of anti-smuggling in India- Comprises of 12 Zonal Units: Ahmedabad- Bangalore-Chennai- Cochin- Delhi- Hyderabad- Kolkata- Lucknow- Ludhiana- Mumbai- Indore- Guwahati- 36 Regional Units-

· Director General, DRI [DG, DRI]-

Judicial & Quasi-Judicial Foras [Civil Cases]:

· Supreme Court Of India

· Customs Excise and Service Tax Appellate Tribunal (CESTAT)

· Adjudicating Authorities- Addl. Director General (Adjudication) [ADG (Adjudication)]-

· Proper officer- U/S-28(4) of the Customs Act, 1962

Judicial & Quasi-Judicial Foras [Criminal Cases]:

· Supreme Court Of India

· High Courts Of the States

· Chief Metropolitan Magistrates [CMM]/ Chief Judicial Magistrates [CJM].

Bare Acts Involved:

· Customs Act, 1962.

· Other allied Acts: Arms Act, NDPS Act, COFEPOSA, Wildlife Act, Antiquities Act-

Scope Of Investigation, Prosecution & Adjudication Of DRI cases:

· Collection, collation of intelligence relating to smuggling smuggling of contraband goods, narcotics, under-invoicing etc. through sources of India and abroad, including secret sources.

· Analysis and dissemination of such intelligence to the field formations for action and working on such intelligence, where necessary.

· Keeping watch over important seizures and investigation cases. Associating or taking over the investigations which warrant specialized handling by the Directorate.

· Guiding important investigation/prosecution cases.

· Keeping liaison with foreign countries, Indian Missions and Enforcement agencies abroad on anti-smuggling matters.

· To keep liaison with CBI and through them with the INTERPOL.

· To refer cases registered under the Customs Act to the Income Tax Department for action under the Income Tax Act.

· To keep statistics of seizures and prices/rates etc. for watching trends of smuggling and supply required material to the ministry of Finance and other Ministries.

· To study and suggest remedies for loopholes in law and procedures to combat smuggling.

New Delhi Office:

Directorate of Revenue Intelligence (Headquarter), Drum Shape Building, I.P.Bhavan, I.P.Estate, New Delhi – 110002

Judgments:

· M/S Canon India Private Limited versus Commissioner of Customs Forum- Supreme Court of India Judgment Dated- 09.03.2021- Powers Of DRI Explained- DRI Not 'Proper Officer' Under Section 28(4) Customs Act; Has No Power To Recover Duties.

· Sundeep Mahendrakumar Sanghavi Vs. Union of India - Gujarat High Court Judgment Dated- 04.08.2021- R/Special Civil Application No. 8669 of 2020.

· Commissioner of Customs Vs Sayed Ali and Another- (2011) 3 SCC 537

· Mangali Impex Limited Vs Union of India- Delhi High Court Judgment- 2016 (5) TMI 225.

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