In pursuance to the 2018 amendment in Section 28 of the Customs Act, 1962 (“Customs Act”) regarding pre-notice consultation, the CIBC had recently issued Notification No. 29/2018-customs (NT) dated April 2, 2018 which notifies the Pre-notice Consultation Regulations, 2018. These Regulations prescribe the procedure for conducting the pre-notice consultations.
- To recap, Section 28 of the Customs Act prescribes the normal period of limitation for issuance of a show cause notice. As per these Regulations, an officer who proposes to issue such notice is required to inform such person, from whom the amount is proposed to be recovered, in writing, at least two months before the expiry of the time limit mentioned in Section 28 of the Act. It also provides that this intimation is required to be made before issuance of a demand notice.
- Further, where the concerned person intends to be heard in person, such intent would need to be clearly indicated in the reply filed. However, an important aspect to note is that the Regulations provide that no adjournment can be sought once the PH request has been granted.
The Regulations are largely a welcome move since it provides assessees an opportunity of being heard before issuance of a notice. The Regulations also contain other details regarding time limit for filing the response and time limit for granting of the PH and the attached document may be referred to for these details.