TaxTMI 
TaxTMI 
2026 (9) TMI 1777
X X X X Extracts X X X X
X X X X Extracts X X X X
....GST at Nil rate under Serial No.102 of Notification No.02/2017-Integrated Tax (Rate), as amended, in respect of the goods imported under the Bill of Entry dated 24.09.2020, was rejected and a demand for differential duty of Rs. 5,14,380/- was raised under Section 28(8) of the Act, together with applicable interest. 2. The petitioner filed the Bill of Entry dated 24.09.2020 for clearance of the imported goods described as "Rice Bran", classifying the same under tariff item 23024000 and claiming the benefit of Serial No.102 of Notification No.02/2017-Integrated Tax (Rate). The petitioner accordingly paid IGST at Nil rate. 3. The Bill of Entry was subsequently taken up for audit. According to the Department, the goods, namely, rice bran ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....itioner had wilfully misclassified the goods and had thereby fraudulently availed the benefit of the notification. 8. The short question that arises for consideration is whether the ingredients necessary for invoking Section 28(4) of the Act are made out in the facts of the present case. 9. The bill of entry is dated 24.09.2020 which was accepted by the proper officer on the same day. The alleged show cause notice is dated 07.05.2020. Section 28(1) of the Act applies where duty has not been levied, has been short-levied, has been erroneously refunded, or has been short-paid, for reasons other than collusion, wilful misstatement or suppression of facts. In such cases, Section 28(1)(a) requires the proper officer to issue a notice withi....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... petitioner had deliberately furnished a false declaration or suppressed any material fact with an intention to evade payment of duty. 14. The dispute, therefore, appears to be essentially with regard to the applicability of the exemption notification and the rate of IGST payable on the imported goods. Such a dispute, in the absence of material establishing the ingredients specified in Section 28(4), cannot by itself justify invocation of the extended period. 15. The mere use of the expression "wilful misstatement" in the show cause notice or in the impugned order cannot confer jurisdiction under Section 28(4). The Department is required to establish the factual basis for such allegations by placing relevant material on record. In the....