Section 28 Customs Act Applicable for IGST Short Levy on Imports | HC

Case Details: Al Kabeer Exporters vs. Deputy Commissioner of Customs (Imports) [2026] 183 taxmann.com 244 (Kerala)

Judiciary and Counsel Details

• Ziyad Rahman A.A., J.
• Tomson T. Emmanuel, Adv. for the Appellant.
• P.R.Sreejith, R. Harishankar, Advs. & C. Dinesh, CGC for the Respondent.

Facts of the Case

The petitioners were GST-registered importers of semi-dried dates, claiming an IGST exemption intended for fresh dates. A post-clearance audit detected the misdeclaration and issued show-cause notices under Section 28 of the Customs Act, 1962, orders demanding IGST at 12% with interest; only partial payments were made, and demand notices followed. It did not dispute the IGST liability but challenged the demand notices and sought amendment of Bills of Entry to claim input tax credit (ITC). The matter was accordingly placed before the High Court.

High Court Held

The High Court held that the challenge to Section 28 proceedings was not maintainable and that IGST on imports was leviable under Section 3(7) read with Section 3(12) of the Customs Tariff Act, 1975 and Section 5 of the IGST Act, making Section 28 applicable for recovery of short levy. It further held that Section 149 of the Customs Act permits amendment of Bills of Entry only with contemporaneous documentary evidence, which was absent due to misdeclaration and delay, so correction for ITC was not permissible; hence the writ petitions were dismissed.