Procedure for Less Charge Demand - CBEC's Customs Manual 2023 - Customs

Chapter 13: Procedure for Less Charge Demand 1. Introduction: 1.1 The Customs Act, 1962 mandates filing of correct declaration by importers or exporters in respect of imported / export goods with regard to value, description of goods, classification, exemption notifications having bearing on assessment of Customs duty etc. The Customs duty is determined in terms of Section 15 or section 16 of the Customs Act, 1962 in respect of imported or export goods respectively. If the duty paid / levied is found to be less than what is due to be paid to the Government, the importer or exporter is required to pay the short levied / non levied or short paid / non paid amount of duty. In this regard, the Customs Act, 1962 empowers officers to issue a demand cum Show Cause notice for recovery of amount of duty short levied/ non levied from the importer/exporter.