AI Overview...
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Section 28(4) - Fraud and Show Cause Notices
The courts have clarified that Section 28(4) of the Customs Act, 1962, can only be invoked in cases involving fraud. Specifically, the validity of show cause notices issued under this section hinges on the presence of fraudulent conduct. For instance, one case interpreted that notices issued without establishing fraud are invalid, emphasizing the need for fraud to trigger proceedings under Section 28(4) Asahi India Glass Ltd. Represented by its Power of Attorney Mr. Rahul Vashist VS Commissioner of Customs, Chennai-II Office of the Commissioner of Customs, Chennai - Madras. -
Legal Validity and Conditions for Section 28(4)
The authorities must detect fraud within the prescribed limitation period, as per the proviso of Section 28. Cases involving forged licenses or misstatement must demonstrate that fraud was established before initiating recovery proceedings. If no fraud is proven, notices or demands under Section 28(4) are likely to be invalid Commissioner Of Customs (preventive), Mumbai VS Zenit Ltd - Supreme Court. -
Penalties and Fraudulent Activities
Penalties under Sections 112(a), 114A, and 114AA are discussed in relation to fraudulent evasion or misstatement. The courts have held that penalties are justified when fraud or wilful misstatement is proved, and proceedings are primarily for penalty imposition, not for duty demand Seville Products Limited VS Commissioner of Customs Exports, Icd-tughlakabad, New Delhi - Delhi. -
Fraudulent Availment and Duty Evasion
Fraudulent activities such as misstatement, suppression of facts, or fraudulent availing of benefits like DEPB are subject to penalties under Section 112 of the Customs Act. The courts have emphasized that establishing fraud is essential for invoking Section 28(4) and for penal action Commissioner Of Customs, Amritsar VS Atm International - Punjab and Haryana. -
Classification Disputes and Fraud
In classification disputes, the show cause notices must specify reasons, including any fraudulent intent, for invoking Section 28(4). The validity of classification and the justification for invoking this section depend on demonstrating fraud or misstatement AMBIKA FOOD INDUSTRIES PVT. LTD. REP. BY ITS DIRECTOR ALOK AGARWAL VS UNION OF INDIA, REP. BY ITS SECRETARY MINISTRY OF FINANCE DEPARTMENT OF REVENUE CENTRAL SECRETARIAT, NEW DELHI - Telangana, M/S.ASAHI INDIA GLASS LTD vs COMMISSIONER OF CUSTOMS CHENNAI-II - Madras. -
Limitations and Fraud Detection
Authorities are required to detect fraud within the statutory period. If fraud is established within this period, proceedings are valid; otherwise, they may be barred by limitation Commissioner Of Customs (preventive), Mumbai VS Zenit Ltd - Supreme Court.
Analysis and Conclusion
Section 28(4) of the Customs Act, 1962, is a specialized provision that can be invoked only in cases involving fraud. The courts have consistently held that for show cause notices or proceedings under this section to be valid, there must be clear evidence of fraudulent intent or activity. Proceedings initiated without establishing fraud, or outside the limitation period, are liable to be invalidated. Penalties under Sections 112 and others are also contingent upon proving fraudulent conduct. Overall, the emphasis is on the necessity of demonstrating fraud to invoke Section 28(4) effectively and lawfully Asahi India Glass Ltd. Represented by its Power of Attorney Mr. Rahul Vashist VS Commissioner of Customs, Chennai-II Office of the Commissioner of Customs, Chennai - Madras, Commissioner Of Customs (preventive), Mumbai VS Zenit Ltd - Supreme Court, Commissioner Of Customs, Amritsar VS Atm International - Punjab and Haryana.
Search Results for "Customs Section 28 4 Fraud"
2024 0 Supreme(Mad) 1080 • India - Madras
SENTHILKUMAR RAMAMOORTHY
Customs - Classification - Customs Act, 1962 - Sections 28(4) - The court interpreted Section 28(4) of the ... Issues: Whether the show cause notice issued under Section 28(4) of the Customs Act was valid given the absence ... Ratio Decidendi: The court held that Section 28(4) can only be invoked in cases of fraud#....
2023 0 Supreme(Del) 4358 • India - Delhi
VIBHU BAKHRU, AMIT MAHAJAN
Penalty - Customs Act - Section 112(a), Section 114A, Section 114AA - The court discussed the imposition of penalties under Section ... duty and imposed penalties under Section 112(a) of the Customs Act. ... Ratio Decidendi: The court held that the levy of penalty under Section 112(a) of the Customs Act on the appellant was within ... Further, the present proceedings are for imposition of penalty and not for demand of duty under #H....
2021 0 Supreme(Telangana) 183 • India - Telangana
UJJAL BHUYAN, CHILLAKUR SUMALATHA
, 2(91), 3, 5, 73, 74 - Integrated Goods and Services Tax Act, 2017 - Section 20 - Customs Tariff Act, 1975 - Section 28(4) - Determination ... duty, proceedings initiated by Directorate of Revenue Intelligence for recovery of duty not paid under Section 28(4) of Customs ... Act, 1962, are valid in law - Whether in context of Section 28(4) of Customs Act, 1962 t....
2018 0 Supreme(SC) 1908 • India - Supreme Court
S.A.BOBDE, L.NAGESWARA RAO, R.SUBHASH REDDY
It held that the authorities had detected the fraud within the prescribed period under the proviso of Section 28 of the Customs Act ... Customs Act - Limitation - Section 28 Fact of the Case: The case involved the use of forged Special Import Licences ... Issues: The main issue was whether the demand for duty was barred by limitation under Section 28 of the Customs Act. ... We find that the authorities claimed to....
2020 0 Supreme(Kar) 2298 • India - Karnataka
S.SUJATHA, JYOTHI MULIMANI
Customs Tariff Act, 1975 - Customs Act, 1962 - Section 71 - Indian Contract Act, 1972 - Sections 123 to ... Act, 1962 - Held, Section 71 of the Customs Act, 1962 contemplates that no goods would be debonded or removed from a warehouse without ... In terms of clause 1(a) of Section 72 if any warehouse goods are removed from a warehouse in contravention of Section 71, the proper ... justifiable in terms of proviso to Section #HL_START....
2025 Supreme(Online)(DEL) 935 • India - High Court of Delhi
MR. JUSTICE YASHWANT VARMA, MR. JUSTICE HARISH VAIDYANATHAN SHANKAR, JJ
(A) Central Excise Act, 1944 - Section 11A - Central Excise Rules, 2002 - Confiscation of goods and imposition of penalty for contravention ... However, and of significance is sub-section (4-B), and which continues to employ the phrase “where it is possible to do so” as opposed to the amendments which came to be made in Section 28 of the Customs Act. ***** 20. ... It is relevant to observe that Section 73(10) of the CGST Act uses the words “shall issue” and does not a....
2024 Supreme(Online)(MAD) 22660 • India - High Court of Madras
Honourable Mr Justice SENTHILKUMAR RAMAMOORTHY
Customs - Classification - Customs Act - Section 28: The court examined classification disputes under the Customs Act, emphasizing ... Issues: The main issues involved the validity of the classification under the Customs Act and the justification for invoking ... The show cause contains the following reasons for invoking section 28(4) of the Customs Act: “26....The Customs department can scrutini....
2021 0 Supreme(All) 1248 • India - Allahabad
NAHEED ARA MOONIS, SAUMITRA DAYAL SINGH
6 - Customs Act – Sections 4 and 28 - Assignment contemplated - Wilful Misstatement Or Suppression Of Facts To Evade Tax - Misstatement ... Goods and Services Tax Act, 2017 - Sections 74(9), 2(24), 73, 28(4), 122, 125, 129 ,130, 4(2), 2, 5(3), 2(91) read with 3, 4 and ... - no function came to be entrusted to them under Customs Act, in absence of any sub-delegation made in their favour by a further ... of #HL_START....
2007 0 Supreme(P&H) 1524 • India - Punjab and Haryana
AJAY K.MITTAL, M.M.KUMAR
Custom Appeal - Fraudulent Availment of Duty Entitlement Pass Book (DEPB) Benefit - Customs Act, 1962, Section 112 - Summary: ... The court discussed the fraudulent availment of DEPB benefit, the penalty under Section 112 of the Customs Act, and the legal principles ... Issues: The issues included fraudulent availment of DEPB benefit, penalty under Section 112 of the Customs Act, and the validity ... Kamla and others 2001 (4) SCC 342. The Tribunal a....
2013 1 Supreme 481 • India - Supreme Court
D.K.JAIN, MADAN B.LOKUR
Customs Act, 1962. ... 28 of the Customs Act. ... -A of the Excise Act which are missing in Section 28(1) of the Customs Act and the proviso in particular… ... 56. ... leviable thereon under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and the additional duty, if any, leviable thereon under section 3 of the said Customs Tariff Act...” ... Though it was sought to be contended that Section #HL_ST....
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