Section 28A explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 28A deals with a particular situation: goods have been cleared over time on the footing of a practice, generally prevalent among importers and customs officers, under which duty was not levied or was levied at a lower amount than the law required. The Central Government can then direct, by notification, that the duty not collected because of that practice need not be paid.
This article follows the text on the CBIC portal updated to 30 March 2022 (the Act as amended up to the Finance Act, 2022). Please check any later Finance Act changes to this section before acting.
If the Central Government is satisfied that a practice was or is generally prevalent regarding the levy of duty (including non-levy), and that the goods were or are in fact liable to duty or to a higher duty, it may by notification direct that the duty not levied or short-levied under that practice need not be paid. Anyone who paid the duty that the notification would have spared can apply for a refund within six months of the notification, dealt with under section 27(2).
Sub-section (1): the power and its two conditions
The sub-section applies "notwithstanding anything contained in this Act". The Central Government must be satisfied of two things together:
| Condition | Text |
|---|---|
| (a) The practice | A practice was, or is, generally prevalent regarding levy of duty (including non-levy thereof) on any goods imported into, or exported from, India |
| (b) The liability | Such goods were, or are, liable (i) to duty, in cases where according to the practice the duty was not, or is not being, levied; or (ii) to a higher amount of duty than what was, or is being, levied according to the practice |
If both are met, the Central Government may, by notification in the Official Gazette, direct that the whole of the duty payable on such goods, or, as the case may be, the duty in excess of that payable on such goods but for the practice, shall not be required to be paid in respect of the goods on which the duty was not, or is not being, levied, or was, or is being, short-levied, in accordance with the practice.
Several points follow from the wording.
- The power is the Government's. It is not an entitlement of the importer. The section says the Government "may" issue the notification.
- The practice must be general. The words "generally prevalent" point to a widespread practice, not one importer's arrangement. The text does not define the expression, and this article does not attempt to.
- The condition (b) is a statement of liability. The goods must in truth have been liable to duty (or a higher duty); the section is a relief where the practice departed from what the law demanded.
- It covers non-levy as well as short-levy. "Including non-levy" and clause (b)(i) and (ii) make this clear.
- It works through a notification. Without one, there is no direction and nothing under sub-section (2).
The footnotes show that the section was inserted by Act 25 of 1978 (section 7) with effect from 1 July 1978, and that the section was renumbered as sub-section (1) by Act 29 of 1988 with effect from 1 July 1988.
If your goods have been cleared on the basis of a long-standing practice and a demand is now being made, a legal consultation can help you assess whether this section could apply and how to approach the Government.
Sub-section (2): those who have already paid
Where a notification under sub-section (1) has been issued in respect of any goods, the whole of the duty paid on such goods, or, as the case may be, the duty paid in excess of that payable on such goods, which would not have been paid if the notification had been in force, shall be dealt with in accordance with the provisions of sub-section (2) of section 27.
The proviso says the person claiming the refund of such duty or excess duty must make an application to the Assistant Commissioner of Customs or Deputy Commissioner of Customs, in the form referred to in sub-section (1) of section 27, before the expiry of six months from the date of issue of the notification.
So the refund route has three parts:
- Eligibility: duty actually paid that would not have been paid if the notification had been in force.
- Procedure: dealt with under section 27(2), including who is paid and who is credited to the Fund. See our article on section 27.
- Time: a six-month window from the date of issue of the notification, shorter than the one-year period in section 27(1).
The footnote shows that sub-section (2) was substituted by Act 40 of 1991 (section 11) with effect from 20 September 1991, and that the words "Assistant Commissioner of Customs or Deputy Commissioner of Customs" were substituted by Act 27 of 1999 with effect from 11 May 1999. Note that the time runs from the notification's date of issue, not from the date the importer first learns of it.
How section 28A fits with the demand provisions
Section 28 is the provision under which a notice demands duty not levied or short-paid; our article on section 28 explains the ordinary notice and the time limits. Section 28A is the other side: it is a means by which the Government can decide, for a class of goods cleared on a general practice, that the duty is not to be recovered. The text of section 28A does not refer to section 28; the connection is by subject matter. Like the exemption power in section 25, which our article on section 25 covers, it operates by notification.
| Section | Direction of the power | Instrument |
|---|---|---|
| Section 25 | Exempt goods from duty prospectively, generally or by special order | Notification or special order |
| Section 28 | Recover duty not levied or short-paid | Show cause notice |
| Section 28A | Direct that duty not levied or short-levied under a general practice need not be paid | Notification |
What the text does not say
The section prints no definition of "practice", no minimum period for which a practice must have existed, and no list of goods. It does not say how a trader can ask the Government to act. It also does not say that the notification must apply to past clearances only; the words "was, or is" and "was, or is being" speak of past and present. If you want to rely on the section, read the notification itself.
A worked example with invented names
For several years, customs offices at a port cleared a particular chemical without charging duty on the footing of a view that no duty applied, although the goods were in fact liable. Many importers followed the same practice. The Central Government, satisfied that the practice was generally prevalent and the goods liable, issues a notification directing that the duty not levied under the practice need not be paid. Orbit Chemicals Pvt. Ltd., which had cleared goods without duty on that footing, therefore does not have to pay the duty that was not levied. Another importer, Pioneer Dyes Pvt. Ltd., had paid duty on a similar consignment. It may apply to the Deputy Commissioner within six months of the date of issue of the notification, in the form referred to in section 27(1), for refund of the duty it would not have paid if the notification had been in force, and the application is dealt with under section 27(2).
Need help with a demand based on past practice?
A demand that cuts across a long-standing practice at a port raises different questions from an ordinary short-levy. Our legal consultation service can help you place your clearances against section 28A and the notification, and note the six-month refund deadline if you have paid.
Key takeaways
- The Central Government may, by notification, direct that duty not levied or short-levied under a generally prevalent practice need not be paid.
- Both the practice and the liability of the goods to duty (or a higher duty) must be satisfied.
- Duty already paid that would not have been paid under the notification is dealt with under section 27(2).
- The refund application must be made to the Assistant Commissioner or Deputy Commissioner within six months of the notification's date of issue.
- The text does not define "generally prevalent practice"; the notification is the guide.
Read next
- Section 28: show cause notice for duty not levied or short-paid
- Section 27: claim for refund of duty and unjust enrichment
- Section 25: power to grant exemption from duty
- Customs Refund: Grounds and Claim Process
Disclaimer: Based on the Customs Act, 1962 as published on the CBIC Tax Information Portal, updated to 30 March 2022 (amended up to the Finance Act, 2022), as consulted on 2 October 2026. Finance Acts of 2023 and later, and the current rules, regulations and notifications, should be checked. This article is general information, not legal advice; check the official text before acting.