Section 28B of The Customs Act,1962
Duties collected from the buyer to be deposited with the Central Government.
1[28B. Duties collected from the buyer to be deposited with the Central Government.--(1) Notwithstanding anything to the contrary contained in any order or direction of the Appellate Tribunal 2[, National Tax Tribunal] or any Court or in any other provision of this Act or the regulations made thereunder, 3[every person who is liable to pay duty under this Act and has collected any amount in excess of the duty assessed or determined or paid on any goods under this Act from the buyer of such goods] in any manner as representing duty of customs, shall forthwith pay the amount so collected to the credit of the Central Government. 4[(1A) Every person who has collected any amount in excess of the duty assessed or determined or paid on any goods or has collected any amount as representing duty of customs on any goods which are wholly exempt or are chargeable to nil rate of duty from any person in any manner, shall forthwith pay the amount so collected to the credit of the Central Government.] 5[(2) Where any amount is required to be paid to the credit of the Central Government under 6[sub-section (1) or sub-section (1A), as the case may be,] and which has not been so paid, the proper officer may serve on the person liable to pay such amount, a notice requiring him to show cause why he should not pay the amount, as specified in the notice to the credit of the Central Government.
- (3)The proper officer shall, after considering the representation, if any, made by the person on whom the notice is served under sub-section (2), determine the amount due from such person (not being in excess of the amount specified in the notice) and thereupon such person shall pay the amount so determined.
- (4)The amount paid to the credit of the Central Government under 7[sub-section (1) or sub-section (1A) or sub-section (3) as the case may be,] shall be adjusted against the duty payable by the person on finalisation of assessment or any other proceeding for determination of the duty relating to the goods referred to in 8[sub-section (1) and sub-section (1A).]
- (5)Where any surplus is left after the adjustment made under sub-section (4), the amount of such surplus shall either be credited to the Fund or, as the case may be, refunded to the person who has borne the incidence of such amount, in accordance with the provisions of section 27 and such person may make an application under that section in such cases within six months from the date of the public notice to be issued by the Assistant Commissioner of Customs for the refund of such surplus amount.]
Summary
- Under Section 28B of the Customs Act, any person who collects excess money from a buyer as representing customs duty must deposit it with the Central Government.
- This requirement applies even if the goods are completely exempt or subject to a nil rate of duty.
- The proper officer may serve a notice to show cause on the person who fails to pay the collected amount.
- Any surplus left after adjustments is credited to the Fund or refunded to the buyer who actually bore the financial cost, if they apply within six months of a public notice.
Practical examples
FAQ
1. What does Section 28B of the Customs Act, 1962 say about excess tax collected from buyers?
Under Section 28B of the Customs Act, 1962, if any person collects an amount in excess of the assessed duty from a buyer as customs duty, they must immediately pay that excess amount to the Central Government. This applies even if the goods are completely exempt or have a nil duty rate.
2. What happens if a person does not deposit the excess duty collected from a buyer under Section 28B of the Indian Customs Act?
If the excess amount is not deposited, a proper customs officer can issue a notice to the person under Section 28B of the Indian Customs Act. This notice requires them to explain why they should not pay the specified amount to the Central Government.
3. How is the excess money deposited under Section 28B of the 1962 Customs Act used?
The deposited money is adjusted against the actual customs duty payable once the tax assessment is finalised. If there is still a surplus left after this adjustment, it is either credited to the Consumer Welfare Fund or refunded to the buyer who actually paid it, per Section 28B of the 1962 Customs Act.
4. What is the time limit for a buyer to claim a refund of any surplus money under Section 28B of the Customs Act?
To claim a refund of any surplus, the person who actually bore the cost must apply within six months from the date of the public notice issued by the Assistant Commissioner of Customs under Section 28B of the Customs Act.
Test yourself
1.Under Section 28B of the Customs Act, 1962, if an importer collects excess customs duty from a buyer on goods that are completely exempt, what must the importer do?
2.Under Section 28B of the Indian Customs Act, what action can the proper officer take if a person fails to pay the excess customs duty collected from a buyer?
3.If there is a surplus left after adjusting the deposited amount against final duty under Section 28B of the 1962 Customs Act, who can get a refund?
4.What is the time limit to apply for a refund of any surplus left under Section 28B of the Customs Act?
5.Under Section 28B of the customs law, what happens to the excess customs duty collected from a buyer once it is paid to the credit of the Central Government?