Custom duty

[Jasbir Uppal]

Dear Professional brothers & Sisters

My client has import the goods during the financial year 2018-19 from out of Indian Territory, after verification of goods by the custom authority as assessed the duty my client has paid (IGST) @12% and custom authority released the goods. Now after more the six year custom authority issued a notice to my client on the grounds that you have liable to pay duty @ 18%. After inspection of the file of the department there is no any sample of goods attested in the file. Can after such a long time can department asked to pay the difference of duty when the sample of goods also not on file.

With regards

J.S. Uppal

AI Summary

Customs limitation period prevents late reassessment absent evidence of fraud or suppression after validated self-assessment and release.
Importer paid IGST at a lower rate after customs verification and release; years later customs issued a demand for the differential tax. The core legal question is whether the department may reassess or recover after the statutory limitation period has expired absent positive evidence of fraud or suppression. Reassessment powers are limited when a validated self-assessment was accepted, and statutory procedural timelines and permitted extensions determine whether the proceedings remain maintainable.