Customs exemption conditions and Section 28 limitation do not apply to post-import breach demands.

Section 28(1) of the Customs Act does not govern a demand raised for breach of post-importation conditions attached to a duty exemption notification, because that provision is directed to cases of duty not levied, short levied, or erroneously refunded. On that basis, the objection that the demand was time-barred under Section 28(1) could not stand. The Tribunal's view on limitation and jurisdiction was therefore set aside, and the demand based on non-compliance with the exemption conditions was treated as outside the scope of Section 28(1).

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Issues: Whether Section 28(1) of the Customs Act applied to a demand raised on the ground of non-compliance with post-importation conditions attached to a duty exemption notification, and whether the demand was barred by limitation.

Analysis: The demand arose from alleged breach of post-importation conditions attached to clearance at nil duty under a customs exemption notification. The statutory scheme of Section 28(1) applies to cases of duty not levied, short levied, or erroneously refunded, and not to the present type of claim. Accordingly, the invocation of Section 28(1) and the consequent finding of time bar could not stand.

Conclusion: The objection based on Section 28(1) was rejected and the Tribunal's view on limitation and jurisdiction was set aside.

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