Customs Act, 1962 — Chapter V: Levy of, and Exemption from, Customs Duties
28AAA. Recovery of duties in certain cases
- Where an instrument (a scrip, authorisation, licence, certificate or similar document issued under the Foreign Trade (Development and Regulation) Act, 1992 for a reward/incentive/duty-exemption/duty-remission scheme) issued to a person was obtained by collusion, wilful mis-statement or suppression of facts, and is utilised by a person other than the one to whom it was issued, the duty relatable to that utilisation is deemed never to have been exempted or debited and is recovered from the person to whom the instrument was issued (without prejudice to action against the importer under section 28).
- The person from whom duty is recoverable is also liable to interest at the rate under section 28AA, calculated from the date of utilisation of the instrument to the date of recovery.
- The proper officer serves a show-cause notice (thirty days to respond), and after a hearing determines and orders recovery of the duty/interest, not exceeding the amount specified; the person must repay within thirty days of the order.
- Where an order determining duty has already been passed under section 28, no order to recover the same duty may be passed under this section.
- If the person fails to repay within thirty days, recovery proceeds under section 142(1).
