Duty-free import of raw materials
India’s customs regime is governed by the Customs Act 1962, the Customs Tariff Act 1975, the Foreign Trade (Development and Regulation) Act 1992, the Foreign Trade Policy 2023 and the circulars and notifications issued by the Central Board of Indirect Taxes and Customs (CBIC). Customs duty consists of basic customs duty (BCD), social welfare surcharge, IGST, and, for certain goods, anti-dumping duty, countervailing duty or safeguard duty. Classification under the Harmonised System Nomenclature (HSN), valuation under the Customs Valuation (Determination of Value of Imported Goods) Rules 2007, and rules-of-origin under preferential trade agreements each carry significant duty exposure. AMLEGALS advises importers, exporters and customs brokers on the correct tariff position and defends assessees in adjudication and appellate proceedings.
Customs proceedings follow a defined path: a show-cause notice under Section 28 (non-payment, short-payment or erroneous refund), Section 124 (confiscation and penalty), or Section 28(4) (fraud and suppression, five-year extended period); a personal hearing before the adjudicating authority; an order-in-original; and appeals to the Commissioner (Appeals), the CESTAT and the High Court or Supreme Court. AMLEGALS handles every stage from pre-import advisory to post-clearance audit defence.
Advising on the correct HSN classification, the transaction-value method and alternative valuation rules, and obtaining advance rulings where classification or origin is uncertain.
Structuring imports to avail preferential duty rates under India’s free-trade and comprehensive-partnership agreements, and maintaining the certificate-of-origin documentation.
Drafting the reply to show-cause notices under Sections 28, 124 and 114A of the Customs Act and representing assessees at the personal hearing.
Filing and arguing appeals before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) and the High Court, including applications for stay of the duty demand.
Advising on duty-free import authorisation (DFIA), advance authorisation, the RoDTEP scheme and other export-incentive mechanisms under the Foreign Trade Policy.
Defending assessees in post-clearance audits, DRI investigations and proceedings initiated by the Directorate of Revenue Intelligence.
Under Section 28 of the Customs Act 1962, the normal period for issuing a show-cause notice is two years from the relevant date. Where the non-payment or short-payment is by reason of fraud, collusion, wilful misstatement or suppression of facts, the extended period of five years applies.
For an appeal to the Commissioner (Appeals) under Section 128, the pre-deposit is 7.5% of the duty demanded. For a further appeal to CESTAT under Section 129E, an additional 10% (total 17.5%) of the duty demanded is payable, with a cap of ten crore rupees for each stage.
An anti-dumping duty imposed under Section 9A of the Customs Tariff Act 1975 can be challenged before CESTAT on jurisdictional, procedural or substantive grounds. Additionally, the designated authority’s determination can be subject to judicial review.
A duty-free import authorisation under the Foreign Trade Policy allows an exporter to import inputs without payment of basic customs duty after completing the export obligation. The authorisation is issued post-export, is freely transferable after a specified period, and is subject to value-addition and documentation conditions.
No. No engagement is treated as accepted until conflicts, scope and terms are confirmed in writing. An initial discussion is confidential and is used only to understand the matter and assess fit.
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