Demand of differential duty

[MK Singh]

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?

AI Summary

Confiscation and penalty follow for misclassification, undervaluation, and import of restricted or prohibited goods under customs law.
Misclassification or misdeclaration of imported goods renders them liable to confiscation and penalty; restricted goods require prior authorization while prohibited goods are barred and subject to confiscation and penalty or compounding. Suspected undervaluation permits customs to reject declared value and re-determine assessable value under valuation rules, after which customs may issue demand notices for differential duty based on the redetermined value.