Court urges petitioners to seek statutory appellate remedy for claims of procedural violations and natural justice concerns.
In a significant ruling, the Delhi High Court has dismissed a batch of writ petitions challenging adjudication proceedings stemming from a Directorate of Revenue Intelligence (DRI) investigation into alleged undervaluation and misdeclaration of imported networking equipment by Zenlayer Networks India Private Limited and others. The court, in its judgment dated August 19, 2026, refused to direct the appointment of a Common Adjudicating Authority (CAA) for all related show cause notices (SCNs), emphasizing the distinct subject matters and procedural stages of the transactions involved.
The petitions, led by Zenlayer Networks and co-petitioners including Amit Singh and Rahi Systems Private Limited, contended that the SCNs arose from a single DRI investigation and involved common facts and allegations, warranting a unified adjudication by a single authority. However, the court found that the SCNs concerned different consignments and statutory consequences, justifying separate adjudications.
The court also addressed complaints of procedural violations, including the alleged denial of an effective opportunity of hearing and non-service of notices. It determined that these claims, involving disputed facts and requiring detailed examination of the adjudication record, are best addressed through the statutory appellate remedy under Section 128 of the Customs Act.
While dismissing the petitions, the court left open the petitioners' right to pursue their contentions before the appellate authority. The judgment emphasized that the dismissal should not be construed as an expression of opinion on the merits of the allegations or procedural objections raised by the petitioners.
The decision underscores the court's reluctance to bypass established statutory mechanisms for addressing grievances arising from complex adjudicatory processes and reaffirms the principle that writ jurisdiction should not be invoked where statutory remedies are available and adequate.
Bottom Line :
Customs Law - Writ petitions challenging adjudication arising from Directorate of Revenue Intelligence (DRI) investigation into imports of networking equipment - Challenges include appointment of Common Adjudicating Authority (CAA), procedural violations, and alleged denial of opportunity of hearing.
Statutory provision(s):
Customs Act, 1962 Sections 128, 111, 112, 114, 114A
Zenlayer Networks India Private Limited v. Union of India, (Delhi)(DB) : Law Finder Doc id # 2962983
