Section Text
1[28AAA. Recovery of duties in certain cases.--(1) Where an instrument issued to a person has
been obtained by him by means of --
(a) collusion; or
(b) wilful mis-statement; or
(c) suppression of facts,
for the purposes of this Act or the Foreign Trade (Development and Regulation) Act, 1992
(22 of 1992), 2[or any other law, or any scheme of the Central Government, for the time being in force, by
such person] or his agent or employee and such instrument is utilised under the provisions of this Act or
the rules 3[or regulations] made or notifications issued thereunder, by a person other than the person to
whom the instrument was issued, the duty relatable to such utilisation of instrument shall be deemed
never to have been exempted or debited and such duty shall be recovered from the person to whom the
said instrument was issued:
Provided that the action relating to recovery of duty under this section against the person to whom the
instrument was issued shall be without prejudice to an action against the importer under section 28.
Explanation 1.-- For the purposes of this sub-section, "instrument" means any scrip or authorisation
or licence or certificate or such other document, by whatever name called, issued under the Foreign Trade
(Development and Regulation) Act, 1992 (22 of 1992), 4[or duty credit issued under section 51B, with
respect to] a reward or incentive scheme or duty exemption scheme or duty remission scheme or such other scheme bestowing financial or fiscal benefits, which may be utilised under the provisions of this Act
or the rules made or notifications issued thereunder.
.
Explanation 2.--The provisions of this sub-section shall apply to any utilisation of instrument so
obtained by the person referred to in this sub-section on or after the date on which the Finance Bill, 2012
receives the assent of the President, whether or not such instrument is issued to him prior to the date of
the assent.
(2) Where the duty becomes recoverable in accordance with the provisions of sub-section (1), the
person from whom such duty is to be recovered, shall, in addition to such duty, be liable to pay interest at
the rate fixed by the Central Government under section 28AA and the amount of such interest shall be
calculated for the period beginning from the date of utilisation of the instrument till the date of recovery
of such duty.
(3) For the purposes of recovery under sub-section (2), the proper officer shall serve notice on the
person to whom the instrument was issued requiring him to show cause, within a period of thirty days
from the date of receipt of the notice, as to why the amount specified in the notice (excluding the interest)
should not be recovered from him, and after giving that person an opportunity of being heard, and after
considering the representation, if any, made by such person, determine the amount of duty or interest or
both to be recovered from such person, not being in excess of the amount specified in the notice, and pass
order to recover the amount of duty or interest or both and the person to whom the instrument was issued
shall repay the amount so specified in the notice within a period of thirty days from the date of receipt of
the said order, along with the interest due on such amount, whether or not the amount of interest is
specified separately.
(4) Where an order determining the duty has been passed under section 28, no order to recover that
duty shall be passed under this section.
(5) Where the person referred to in sub-section (3) fails to repay the amount within the period of
thirty days specified therein, it shall be recovered in the manner laid down in sub-section (1) of
section 142.]
1. Ins. by Act 23 of 2012, s. 122 (w.e.f. 28-5-2018).
2. Subs. by Act 12 of 2020, s. 109, for "by such person" (w.e.f. 27-3-2020).
3. Ins. by s. 109., ibid (w.e.f. 27-3-2020).
4. Subs. by Act 12 of 2020, s. 109, for "with respect to" (w.e.f. 27-3-2020).