What are Customs & Excise Notices?

Customs and excise notices are official communications issued by tax authorities to address discrepancies, seek clarifications, or initiate legal proceedings related to duty payments, classification of goods, or compliance with customs and excise laws. These notices are typically issued under specific sections of the Customs Act or Central Excise Act and require timely responses to avoid penalties.

Common Types of Customs & Excise Notices

1. Show Cause Notice (SCN):

Issued when authorities detect discrepancies in duty payments, misclassification of goods, or non-compliance with customs/excise laws.

Requires the taxpayer to explain or justify their actions within a specified time frame.

2. Demand Notice:

Issued for recovery of unpaid or short-paid customs/excise duties, along with interest and penalties

3. Audit Notice:

Issued to initiate an audit of a taxpayer’s records to verify compliance with customs/excise laws.

4. Seizure Notice

Issued when goods are seized due to suspected violations of customs/excise laws, such as smuggling or misdeclaration.

5. Appeal Notice:

Issued in response to an appeal filed by a taxpayer against an order passed by customs/excise authorities.

Reasons for Receiving Customs & Excise Notices

1. Discrepancies in Duty Payments: Short payment or non-payment of customs/excise duties.

2. Misclassification of Goods: Incorrect classification of goods under the Customs Tariff Act or Central Excise Tariff.

3. Non-Compliance: Failure to comply with procedural requirements, such as filing returns or maintaining records.

4. Audit Findings: Discrepancies identified during audits by customs/excise authorities.

5. Suspected Fraud: Cases of smuggling, misdeclaration, or evasion of duties.