- A show cause notice (usually Section 28) sets out the demand; reply with documents and ask for a personal hearing.
- Appeals: 60 days to the Commissioner (Appeals), 3 months to CESTAT, each extendable on sufficient cause.
- A pre-deposit of 7.5% (first appeal) or 10% (tribunal) is generally required, capped at ₹10 crore.
Why you get a notice
After clearance, customs can still question an entry. The usual reasons are a different HS code than the one declared, a value customs considers too low, an exemption or FTA concession it rejects, a drawback or licence irregularity, or a mismatch between documents. The formal document is a show cause notice (SCN), typically under Section 28 of the Customs Act, setting out the demand and the reasons.
What to do when a notice arrives
- Read the dates. The SCN gives the time to reply, commonly 30 days. Missing it does not stop the case; it only means it proceeds without your answer.
- Collect the file. Bill of Entry, invoice, contract, payment proof, classification record, licence and certificates, for every entry named.
- Reply in writing, point by point, with documents. Ask for a personal hearing and for copies of the documents relied on.
- Consider paying the undisputed part. Paying duty with interest before or soon after the notice can reduce or end proceedings and penalty in some cases, but takes advice.
- Get an order. The adjudicating officer must pass a reasoned order, called the order-in-original.
How long each window runs
Months. The lighter note shows any extension on sufficient cause. Hover or tab to a bar.
Show as a table
| Step | Time limit |
|---|---|
| Appeal to Commissioner (Appeals) | 60 days, plus up to 30 days |
| Appeal to CESTAT | 3 months, plus up to 3 months |
| Order after notice, normal cases | 6 months |
| Order after notice, fraud cases | 1 year |
| Notice for short-levy, normal | 2 years |
| Notice, collusion or suppression | 5 years |
Time runs both ways. Customs has a limit to raise a demand (generally two years, five where collusion, wilful misstatement or suppression is alleged) and a limit to decide it. You have limits to appeal. The appeal windows are short and are counted from when the order is communicated.
Appealing
- First appeal. To the Commissioner (Appeals) under Section 128 within 60 days of the order, extendable by up to 30 days on sufficient cause.
- Tribunal. To the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) under Section 129A within three months of the order, extendable by up to three months.
- Higher courts. A further appeal lies to the High Court on a substantial question of law, and then to the Supreme Court.
Pre-deposit
To appeal, you generally must deposit a percentage of the duty or penalty in dispute, 7.5% for the first appeal and 10% for the tribunal, each capped at ₹10 crore. Check how amounts already paid at the earlier stage are credited. The deposit is refunded with interest if the appeal succeeds.
Do not let an appeal date pass. An order that is not appealed in time becomes final, and the pre-deposit rule means you should plan the cash for it in advance.
Preventing the notice
How EXIMnx helps: EXIMnx keeps each Bill of Entry and Shipping Bill with its invoice, payment, classification note and licence debit, so the evidence for a notice is a single record, and it tracks reply and appeal dates against each case. See Customs & ICEGATE.
Frequently asked questions
How long do I have to appeal a customs order?
60 days to the Commissioner (Appeals), extendable by up to 30 days; three months to CESTAT, extendable by up to three months.
Is a pre-deposit needed to appeal?
Generally yes: 7.5% of the duty or penalty for the first appeal and 10% for the tribunal, capped at ₹10 crore each.
What is the time limit for a Section 28 notice?
Generally two years, or five years where collusion, wilful misstatement or suppression is alleged.
- Customs Act, 1962, sections 28, 128, 129A, 129E and 130: cbic.gov.in
- CESTAT, procedure and case status: cestat.gov.in
This guide is a practical overview, not legal or tax advice. Rules, rates and procedures change by notification; confirm against the current text before you act.