PARA 2.58 OF FTP

Policy Relaxation Committee (PRC) Representation

Has your application been rejected by the Regional Authority due to a procedural lapse? We represent your case at DGFT Headquarters to condone delays and relax policy provisions.

Case Assessment

Tell us why your case was rejected.

What is Customs Adjudication?

Adjudication is the legal process by which a Departmental Authority (like a Joint Commissioner or Principal Commissioner) determines whether an importer/exporter has violated the Customs Act, 1962.

It typically starts with a Show Cause Notice (SCN), asking you to explain why duty should not be demanded or penalties imposed. This is followed by a written reply and a Personal Hearing (PH). The process concludes with an Order-In-Original (OIO), which can be accepted or appealed against.

Legal Support

How We Defend You

Personal Hearing

We present your case before the Adjudicating Authority, clarify technical issues, and argue for dropping proceedings.

Appeals

If the OIO goes against you, we file appeals with Commissioner (Appeals) or CESTAT to challenge the decision.

Critical Timeline

You typically have 30 days to reply to an SCN. Delay can result in an ex-parte order. Act fast.

Common Dispute Areas

Customs authorities often raise demands based on interpretation differences. We specialize in handling:

  • Classification (HS Code)

    Disputes where Customs claims a higher duty HS Code applies.

  • Valuation (SVB)

    Rejection of transaction value citing related party transactions or undervaluation.

  • FTA Denial

    Denial of duty benefits due to questions on Country of Origin (CAROTAR rules).

Document Audit

We review your Import Docs, Contracts, and Payment Trails to build a solid defense.

Professional Fees

Drafting & Filing

Petition Preparation

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Depends on complexity

  • Legal Analysis of Rejection
  • Drafting ANF-2D
  • Hardship Justification
  • Online Filing Support
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Personal Representation

Hearing at DGFT HQ

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Per Visit / Hearing

  • Appointment Management
  • Physical Representation
  • Verbal Arguments
  • Liaison with Section Officer
Book Consultant

*Government Fee for PRC Appeal is ₹ 2,000.

Why CloudDesk for Customs Adjudication?

Adjudication is won on facts and case laws — not emotional requests. CloudDesk provides the legal shield for your cargo.

1. SCN Surgical Analysis

The Show Cause Notice (SCN) is the department’s charge sheet. CloudDesk performs a surgical breakdown of allegations — whether it is misclassification, undervaluation, or misuse of exemptions. We identify the “weak links” in the department’s argument before drafting your defense.

2. Strategic Reply Drafting

We don’t just deny allegations — we draft a comprehensive point-wise rebuttal backed by:
• Supreme Court / CESTAT Judgments
• Technical literature for classification
• Valuation evidence (LME prices, NIDB data)
ensuring your reply is legally fortified.

3. Personal Hearing (PH) Mastery

We represent you before the Adjudicating Authority (Assistant / Joint / Additional Commissioner). Your oral submissions are properly recorded in the Record of Personal Hearing — the most critical document if the matter proceeds to appeal.

4. Penalty & Fine Mitigation

If violation is established, we fight to convert Absolute Confiscation into a Redemption Fine. We argue for minimum penalties under Sections 112 / 114, citing No Mens Rea (no criminal intent) or bona-fide procedural errors.

Frequently Asked Questions

Can I attend the Personal Hearing myself?

Yes, you can. However, Customs Law is complex. Having a professional consultant or lawyer who understands the nuances of the Customs Act, Valuation Rules, and case precedents significantly improves your chances of a favorable outcome.

What happens if I ignore the SCN?

If you fail to reply or appear for hearings (usually 3 opportunities are given), the officer will pass an Ex-Parte Order based on available records, likely confirming the demand for duty and imposing maximum penalties.

Can penalties be reduced?

Yes. Under Section 28 of the Customs Act, if you pay the duty along with interest and a reduced penalty (15% or 25%) within 30 days of the SCN/Order, the proceedings can be concluded. We advise on whether to opt for this or contest the case.

What is a Show Cause Notice (SCN)?

It is a formal notice informing you of the grounds on which the department proposes to confiscate your goods or impose a penalty. You are typically given 30 days to respond.

What happens if I ignore an SCN?

The Adjudicator will pass an "Ex-Parte Order" (an order in your absence). This usually results in the highest possible penalties and absolute confiscation because your side of the story was never heard.

Can I ask for more time to reply?

Yes. You can request an extension. Under Section 122A, you are generally allowed up to three adjournments if you can show sufficient cause.

What is an Order-in-Original (O-I-O)?

It is the final written decision of the Adjudicating Authority. It contains the facts, your submissions, the officer’s findings, and the final "Operating Order" (Duty + Fine + Penalty).

What are the limits of the Adjudicators?

"• Assistant/Deputy Commissioner: Cases where the value of goods is up to ₹5 Lakh. • Joint/Additional Commissioner: Cases up to ₹50 Lakh. • Commissioner: Cases with no value limit."

What is a "Redemption Fine"?

If your goods are confiscated, the officer may give you an "option to pay a fine in lieu of confiscation" (Section 125). Once you pay this fine (and the duty), you can take your goods home.

I am unhappy with the O-I-O. What is the next step?

You must file an appeal with the Commissioner of Customs (Appeals) within 60 days of receiving the order.

Do I have to pay the penalty before appealing?

In 2026, you must make a Pre-Deposit of 7.5% of the disputed duty or penalty (Section 129E) to stay the recovery and have your appeal heard.