confiscation of goods by DRI after payment of duty and interest

[Muthukumar Muthunarasimhan]

Dear Experts,

I am having one case, where the importer has paid the differential IGST and interest before issuing Show cause Notice by DRI and the importer has sent the letter to DRI for waiver of further Show Cause Notice, since the liability is settled in full. But, after waiver of Show Cause Notice by DRI for duty and interest U/s 28(2) of the Customs Act, ( Duty and interest paid on 28.11.2019 and Show cause Notice for confiscation and penalty issued on 4.12.2019 ) they have issued show cause notice for reclassification and confiscation, penalty and personal penalty u/s 111(m) and 112 (a) of the Act. Moreover, the importer did not sign and send any supratnama and undertaking for seizure which was sent by DRI earlier.

My questions are as follows;

1. Is such Show Cause Notice is valid in the eyes of law when the entire liability has been paid before the date of show cause Notice?

2. Is it valid seizure under Customs Act and confiscation proceedings in this aspect?

AI Summary

Importer Challenges Validity of SCN Under Sections 111(m) & 112(a) After Pre-SCN IGST Payment; Seeks Penalty Waiver An importer paid the differential IGST and interest before a Show Cause Notice (SCN) was issued by the Directorate of Revenue Intelligence (DRI), requesting a waiver of further notices. Despite this, the DRI issued an SCN for reclassification, confiscation, and penalties under Sections 111(m) and 112(a) of the Customs Act. Questions arose about the validity of the SCN and seizure under the Customs Act. Responses indicated the SCN is valid, and penalties may be imposed if contravention is proven, despite prior payment of dues. The importer is advised to respond to the SCN and request no penalties due to prior payment.