Demands and Penalties

• If duty is short paid or not paid or erroneously refunded, show cause notice can be issued u/s 11A(1) of
CEA within one year from ‘relevant date’.
• In case of allegation of suppression of facts, willful misstatement, fraud or collusion, the show cause
notice can be issued within five years.
• Show cause notice is to be issued by authority who is empowered to adjudicate the case.
• Adjudicating authority is required to follow principles of natural justice. He has to pass orders with
reasons
• In case of delay in payment of duty, interest @ 13% is payable u/s 11AB(1) of CEA.
• Property of person to whom show cause notice has been issued can be attached provisionally during
adjudication, to protect interest of revenue

Adjudication powers The adjudication powers are as follows –

Authotity Issuof SCNduty And Demand of duty Remission of dutyfor loss of goods Other Power
Commissioner Without limit Without limit
Additional Commissioner Between Rs.20 Lakhs to Rs.50 Lakhs Rs. 5 Lakhs Cases relating matters under proviso to
section 35B(1) i.e. export under bond or under
claim of rebate, loss of goods during transit
to warehouse – without upper monetary limit
Joint Commissioner Between Rs.5 Lakhs to Rs.50 Lakhs Rs. 5 Lakhs Cases relating matters under proviso to
section 35B(1) i.e. export under bond or under
claim of rebate, loss of goods during transit
to warehouse – without upper monetary limit
Deputy/Assistant Commissioner Upto Rs. 5 Lakhs Rs.1 Lakhs (1) Issue registration certificate (2) Refund claim without limit
Superintendent No powers Upto Rs 10,000

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