Customs Show Cause Notice Response — Section 28
Expert drafting of replies to Customs Show Cause Notices (SCN) under Section 28 of the Customs Act, 1962 — demand notices for non-payment, short payment, erroneous refunds, and mis-declaration — including personal hearing representation before the adjudicating officer.
Regulatory Framework
Section 28 of the Customs Act, 1962: demand for duty in certain cases — Sub-section (1) provides for demand for short-levy, non-levy, or erroneous refund within 2 years from the relevant date in normal cases; Sub-section (1A) extends the time limit to 5 years where the short-levy or non-levy is on account of fraud, collusion, wilful mis-statement, or suppression of facts. Section 28(4): mandatory issuance of Show Cause Notice by the proper officer before passing any demand order. Section 28(5): personal hearing — mandatory opportunity of being heard before adjudication, a fundamental requirement of natural justice. Section 28AA: interest on delayed payment of customs duty at 15% per annum from the date the duty was payable until the date of actual payment. Section 114A: penalty for short payment or non-payment of duty — equal to the duty demanded as mandatory minimum; reduced to 25% if duty and interest paid within 30 days of SCN, or 50% if paid within 30 days of final adjudication order. Section 114AB: penalty for mis-declaration and valuation fraud — up to 8 times the duty evaded in cases involving fraud, collusion, wilful mis-statement, or suppression. CBIC Circular on adjudication guidelines and standardized SCN formats.
Overview
When you receive a Show Cause Notice (SCN) from Customs under Section 28 of the Customs Act, 1962, the financial and operational stakes are immediate and significant. An SCN can allege short-payment of customs duty, non-payment, erroneous refund of duty, or mis-declaration of goods — each carrying substantial exposure including the principal duty demanded, interest under Section 28AA at 15% per annum, and penalties that may range from the equivalent of the duty under Section 114A to as much as eight times the duty evaded under Section 114AB in cases involving fraud, collusion, wilful mis-statement, or suppression of facts.
How It Works
- 1
SCN Receipt & Preliminary Assessment
Upon receiving the Show Cause Notice, our team conducts an immediate preliminary assessment to identify the nature of the demand, the time period under dispute, the sections invoked, and the potential financial exposure including duty, interest under Section 28AA, and penalties under Sections 114A and 114AB.
Government1-2 days - 2
Document Collection & Audit Trail Review
We compile and review all relevant documentation including the original Bills of Entry, Shipping Bills, invoices, packing lists, customs declarations filed on ICEGATE, correspondence with the department, and any prior audit reports.
Government2-4 days - 3
Legal Research & Strategy Formulation
Our legal team conducts comprehensive research on applicable provisions of the Customs Act, 1962, relevant CBIC Circulars, Board-level trade notices, and binding judicial precedents from CESTAT, High Courts, and the Supreme Court.
Government2-3 days - 4
Drafting SCN Reply & Filing Submissions
A detailed, point-by-point reply is drafted addressing every allegation in the SCN, structured with factual submissions, legal arguments, documentary evidence references, and prayers for relief.
Government2-3 days - 5
Personal Hearing & Adjudication Representation
Our senior professionals represent the client at the personal hearing mandated under Section 28(5) before the adjudicating officer. Oral submissions are made and the case is argued on merits.
Government3-7 days
Frequently Asked Questions
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