TaxTMI 
TaxTMI 
Hi All, my client wants to pay differential customs duty voluntary due to TP adjustment. The question is whether penalty will be levied while paying differential customs duties voluntary paid by the client. - Pls answer as per the current provisions i.e., pre Budget 2025 and post that also
Penalty in case of volntary payment of customs duty -revision of BOE
17 Mar 2025 
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Voluntary customs duty payment generally avoids penalties if paid with interest and disclosed before a show cause notice is issued.
Voluntary payment of differential customs duty together with applicable interest prior to issuance of a show cause notice ordinarily prevents imposition of penalties; the payer must inform the proper officer. This protection does not apply where underpayment results from collusion, willful misstatement, fraudulent conduct, or suppression of facts, in which case penalties remain available despite subsequent payment. (AI Summary)
Voluntary payment of differential customs duty together with applicable interest prior to issuance of a show cause notice ordinarily prevents imposition of penalties; the payer must inform the proper officer. This protection does not apply where underpayment results from collusion, willful misstatement, fraudulent conduct, or suppression of facts, in which case penalties remain available despite subsequent payment. (AI Summary)