Payment of customs duty under wrong head

Veerchandra B Shetty (Querist) 10 May 2021 This query is : Resolved
An EOU has done DTA sale and accordingly reversed the appropriate Customs duty and paid the same under Head 0038 due to oversight as the same should have been paid under Head 0037
The customs authorities are now issuing a show cause notice for the same stating as non payment of Customs duty.
What is the provision in such a scenario? Can a SCN be issued stating as non payment of Duty, when the duty has already been paid.
How can the Head be rectified in the payment done

Follow Query

Report Abuse

Quick Summary

An EOU mistakenly paid customs duty under the wrong head, leading to a show cause notice for non-payment. While the duty was credited to the government, the incorrect head is causing issues. The recommended solution involves requesting a rectification memo from the treasury authority. However, the customs department may still issue a protective demand or show cause notice, as payment to a wrong head is often treated as non-payment. While challenging the SCN is an option, it's crucial to provide full details of the payment and rectification steps taken, and potentially seek a waiver of penalties.

kavksatyanarayana (Expert) 10 May 2021
You have to request the authority to send an alteration memo to the Treasury Authority with the original challan which was remitted to the wrong head of account. The treasury authority will send it to the DTO/AG. It will take some time.

Veerchandra B Shetty (Querist) 11 May 2021
Thanks for the reply Sir. As suggested the same was informed to the Custom Authority, who have forwarded the request to e-PAO, Chennai for rectification. Till such time the issue is solved/not solved they are issuing a protective demand/ Show Cause notice for duty liability. So when the duty is already paid(though under wrong head it has already been credited to the govt treasury) is it justified that they issue a SCN

kavksatyanarayana (Expert) 11 May 2021
Complain to the Commissioner Excises of your state.

Sankaranarayanan (Expert) 12 May 2021
Better to submit all relevant records and details with books of record to the concerned A.O with representation

T. Kalaiselvan, Advocate Online

(Expert) 12 May 2021
Remittance of customs duty to a wrong account is as good as non payment of the customs duty hence the department can very well issue a show cause notice.
In that case you may have to give an explanation in writing giving the details of the payment already made to a wrong account number and the steps you have taken to retrieve the same for re-depositing the same to the proper head of account.
Since the fault is on your side you cannot challenge the show cause notice issued by the department concerned, but you can take rectification action and claim waiver of the penalty if any that may be imposed for the delay in remittance for the said reason.

Veerchandra B Shetty (Querist) 13 May 2021
Thanks for your prompt reply Sir.

K.S.Ramaswamy Advocate (Expert) 18 May 2021
In my view the show cause notice can be challenged/suitable reply may be given divulging the facts. Its only wrong account code mentioned while making payment of customs duty.

Previous

Next

You need to be the querist or approved LAWyersclub expert to take part in this query .

Click here to login now

Similar Resolved Queries :

Ask Query
Unanswered Queries