Adjudication proceedings - CBEC's Customs Manual 2023 - Customs

6. Adjudication proceedings: 6.1 After receipt of the notice, the noticee shall have to submit its reply within the time period specified in the notice. 6.2 Upon receipt of the notice s reply to a demand notice the matter is examined in detail and the noticee is offered an opportunity of personal hearing to explain his case before the adjudicating authority. After the personal hearing, the adjudicating authority, shall examine the material placed before him and the relevant legal provisions and come to a conclusion. Generally, the issues involved are mis-declaration of the description of the goods resulting in wrong classification and levy of lesser duty, misdeclaration of value, quantity and weight having a bearing on duty, calculation error resulting in short levy of duty, non-inclusion of certain components of value in the assessable value etc. 6.3 The adjudicating authority is required to take an independent decision as a quasi-judicial authority and pass appropriate orders either determining the amount of short levy in terms of Section 28(8) of the Customs Act, 1962 or dropping the proceedings where it is found that there is no short levy. In either case an appealable order is to be issued by the adjudicating authority. Such determination of duty/ issuing adjudication orders is to be done within the time period specified under Sub-section 9 of Section 28 . The duties, fines and penalties imposed, if any, are required to be paid immediately, unless the party files an appeal and obtains a stay from the competent authority. 6.4 The proper officer may keep the case pending, in case the proper officer is unable to determine the amount of duty or interest under sub-section (8) on account of---- (a) an appeal in a similar matter of the same person or any other person is pending before the Appellate Tribunal or the High Court or the Supreme Court; or (b) an interim order of stay has been issued by the Appellate Tribunal or the High Court or the Supreme Court; or (c) the Board has, in a similar matter, issued specific direction or order to keep such matter pending; or (d) the Settlement Commissioner has admitted an application made by the person concerned, Further, the proper officer shall inform the person concerned the reason for non-determination of the amount of duty or interest under sub-section (8) and in such case, the time specified in sub-section (9) shall apply from the date when such reason ceases to exist. 6.5 In case of baggage, the Additional Commissioner or Joint Commissioner shall adjudicate the cases without limit, since such cases are covered by the offences under Chapter XIV of the Customs Act, 1962 and it is necessary to expeditiously dispose such cases in respect of passengers at the airport. 6.6 In other cases, such as short landing, the adjudication power will be the same as provided under the Customs Act, 1962 or the rules/regulations made thereunder. 6.7 As regards breach of condition of a notification after availing of the exemption thereunder, the Apex Court has held that that the obligation under a notification is a continuing one and the Customs authorities are well within their power to recover the duty whenever it comes to their notice that the importer has failed to fulfill the conditions. In such cases the demand can be issued irrespective of the time factor and the amount can be recovered in terms of the provisions of the Customs Act. 6.8 The confirmed demands are enforced and recoveries effected in accordance with the provisions of Section 142 of Customs Act, 1962 . Where it is not possible to recover the amount by adjusting against any money which the Department owes to such persons, or by detaining and selling any goods belonging to such persons which are under the control of the Department, action is initiated to recover Government dues through the District Collector as if it were an arrears of land revenue. Powers are also vested with Customs for attaching/detaining and selling movable or immovable property belonging to or under control of such person. [Refer Circular No.23/2009-Cus, dated 01.09.2009 ]