RAJESH KUMAR SHARMA vs UNION OF INDIA .

The Supreme Court upheld the Delhi High Court's dismissal of a writ petition challenging the compounding amount imposed under Section 135(1)(a) of the Customs Act, 1962. The Court clarified that the compounding amount can be either 20% of the market value of the goods or Rs. 10,00,000, whichever is higher, rejecting the petitioner's argument that the amount exceeded permissible limits. The Court concluded that the interpretation of the compounding guidelines was correct and the petition lacked merit.