TaxTMI 
TaxTMI 
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?
Pre import conditions
24 Jul 2019 
3 Replies 
1836 Views Asked by
Pre import condition invalidation may limit customs penalty exposure where tax and interest were paid and constitutional challenge succeeded.
Non compliance with a pre import condition resulted in clearance without IGST; after payment of IGST and interest, DRI issued a show cause notice invoking Section 28 penalties, noting suppression or mala fide conduct, while the noticee bears the burden to prove absence of mala fide. A High Court declared the pre import condition unconstitutional for the limited period it operated, and a higher court stayed that declaration while restricting enforcement measures against certain traders, affecting the temporal scope of penalty exposure. (AI Summary)
Non compliance with a pre import condition resulted in clearance without IGST; after payment of IGST and interest, DRI issued a show cause notice invoking Section 28 penalties, noting suppression or mala fide conduct, while the noticee bears the burden to prove absence of mala fide. A High Court declared the pre import condition unconstitutional for the limited period it operated, and a higher court stayed that declaration while restricting enforcement measures against certain traders, affecting the temporal scope of penalty exposure. (AI Summary)