Pre import conditions

[Muthukumar Muthunarasimhan]

As per earlier Notification in the customs act my client didn't comply the pre import conditions and cleared.the goods without payment of IGST . This happened for wrong interpretation of Notification no intention to evade tax. Now, DRI issued show cause notice and paid full IGST and relevant interest. Now DRI issued show cause notice for equal penality. Which provisions and case laws we can quote in our reply for waiver of penalty?

AI Summary

Client Faces Penalty for Misinterpreted Customs Notification; Pre-import Conditions Ruled Unconstitutional, Pending Supreme Court Decision A client failed to comply with pre-import conditions under a customs notification, leading to goods being cleared without IGST payment due to a misinterpretation. The Directorate of Revenue Intelligence (DRI) issued a show cause notice (SCN) for penalty after IGST and interest were paid. One reply suggests paying 15% of the penalty within 30 days under Section 28 of the Customs Act, emphasizing the burden of proof lies with the client. Another highlights a Gujarat High Court ruling declaring the pre-import condition unconstitutional, noting the Supreme Court has stayed this order but restricted DRI actions in Gujarat.