2026-VIL-1816-CESTAT-AHM-CU
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CUSTOMS CESTAT Cases

Customs - Maintainability of demand of Anti-Dumping Duty under Section 28 of the Customs Act, 1962 on goods cleared on self-assessment without challenge to the assessment - Appellant imported cold rolled flat products of stainless steel from China under CTH 7219 and cleared them on self-assessment without paying Anti-Dumping Duty leviable under the relevant Notification - Revenue issued SCN under Section 28(1) proposing recovery with interest and penalty, which was confirmed and upheld by the FAA - Appellant contended that self-assessment, being an assessment order not appealed against or modified, cannot be reopened by SCN, relying on the decision of the Hon'ble Supreme Court on refund of duty paid on self-assessment - Whether Revenue can demand duty under Section 28 without first challenging the self-assessment - HELD - The decision relied upon dealt with a refund claim under Section 27, where the Hon'ble Supreme Court held that refund cannot be entertained unless the self-assessment is modified in accordance with law. The present matter involves non-payment of duty during self-assessment and is governed by Section 28 for recovery of duties not levied or not paid, which is entirely different from the refund provisions. The Hon'ble Supreme Court in an earlier decision held that a clearance order under Section 47 cannot debar issuance of an SCN, and a coordinate Bench of the Tribunal followed it to reject the same contention - There is no bar on issuing an SCN under Section 28 without challenging the self-assessment, and the contention is rejected - Recovery of IGST on Anti-Dumping Duty and interest under Sections 28 and 28AA of the Customs Act, 1962 - Appellant contended that IGST is levied under the IGST Act, is not a duty of customs as defined in Section 2(15), and cannot be demanded under Sections 28 and 28AA - Whether IGST on the unpaid Anti-Dumping Duty is recoverable under Section 28 along with interest under Section 28AA - HELD - Section 3(7) of the Customs Tariff Act, 1975 makes imported articles liable to integrated tax, and Section 3(8) includes in its value any duty of customs chargeable under Section 12 of the Customs Act. Anti-Dumping Duty under Section 9A of the Customs Tariff Act is a duty of customs, since Section 2(15) read with Section 12 shows that duties of customs include all duties levied under the Customs Tariff Act. IGST is therefore leviable on the Anti-Dumping Duty not paid at self-assessment, following a coordinate Bench of the Tribunal - The demand of Anti-Dumping Duty and IGST thereon along with interest is affirmed - Quantum of penalty under Section 117 of the Customs Act, 1962 for non-payment of Anti-Dumping Duty - Goods were imported in the year 2019, and penalty was imposed at the enhanced maximum introduced with effect from 01.08.2019 by the Finance (No.2) Act, 2019 - Whether the penalty imposed under Section 117 is sustainable in quantum - HELD - Imposition of penalty under Section 117 is discretionary, and no question of law arises in the absence of any allegation of arbitrary or mala fide exercise, as held by the Hon'ble High Court of Karnataka. However, at the time of these imports the maximum penalty prescribed was lower than the enhanced maximum introduced later - The penalty is reduced to the maximum prevailing at the material time, the impugned order is upheld with this modification and the appeal is partly allowed.
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