1. My question is when any case is book by the Customs, under which section differential duty may be demanded in case of undervaluation and misclassification, when SCN is given u/s 124 of the Customs Act, 1962?
2. If only IGM is filed and BE has not filed by the importer; can the person who booked the cargo can be liable for penalty if it contains any restricted goods/prohibited goods? Please quote any relevant judgement in this case, if possible?
Customs Duties: Misclassified Goods Face Confiscation, Penalties; Undervalued Goods Reassessed Per Rule 12, Customs Valuation Rules 2007. A query was raised regarding the demand of differential duty by customs in cases of undervaluation and misclassification, and whether penalties apply if only an Import General Manifest (IGM) is filed without a Bill of Entry (BE). Responses clarified that restricted goods require authorization, while prohibited goods face confiscation and penalties. Misclassified or misdeclared goods are subject to confiscation under Section 111(m) and penalties under Section 112(a) of the Customs Act, 1962. Undervalued goods can have their value reassessed under Rule 12 of the Customs Valuation Rules 2007, with duties recalculated accordingly. A customs demand notice can be issued under Section 28. (AI Summary)
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