Appraising Group Custom House audit observed wrong classification of HSN of imported items after 2 years and asked us to pay differential duty.
Should we require to reassess Bill of Entry. How to take input tax credit on IGST part.
Kindly advise
Jayanta Bandyopadhyay (234 Points)
10 May 2024Appraising Group Custom House audit observed wrong classification of HSN of imported items after 2 years and asked us to pay differential duty.
Should we require to reassess Bill of Entry. How to take input tax credit on IGST part.
Kindly advise
CA Mayank A Jain
(Chartered Accountant in Practice)
(1146 Points)
Replied 10 May 2024
In case of wrong classification, the department cannot go beyong 2 years i.e., extended period cannot be invoked. Lot of case laws in this regard in case you want to litigate the issue.
If not, then you need to get the BOE's reassessed, pay the differential duty along with IGST so as to avail ITC without any dispute.
Alternatively, a view is also possible that IGST could be claimed based on TR-6 challan however this view to be taken by intimating the department as the department may dispute.
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