Customs Section 28D Explained
Presumption of passing on incidence
At a Glance
Section 28D - Presumption of passing on incidence.
Creates a presumption that duty incidence has been passed to the buyer unless the contrary is proved.
This chapter supports unjust-enrichment analysis by dealing with duty disclosure and presumptions about passing on duty incidence.
Finin2min Decode
In practical terms, this section should be used as a legal control point rather than as a stand-alone sentence. Start by identifying the goods, person, location, transaction, procedure and relevant date. Then link the section to the applicable rules, regulations, notifications, circulars, portal instructions and evidence.
Creates a presumption that duty incidence has been passed to the buyer unless the contrary is proved. The decisive question is whether the exact statutory conditions are met on the facts. A commercial description, internal approval or successful portal filing cannot substitute for the legal test.
Practical Example
A Customs transaction raises this provision. The professional identifies the exact goods, person, location, procedure and date, then maps the section to delegated law, notifications, portal steps and evidence before reaching a conclusion.
For section 28D, the working paper should record why the provision applies, which facts satisfy each element, what evidence supports the position and which further source must be checked before filing, payment, release, enforcement response or appeal.
Professional Alert
Use contemporaneous pricing, contracts, credit notes, ledgers, cost records, tax treatment and customer evidence; a certificate alone may be insufficient.
The current official Gazette and India Code text prevail. Where a notification, rule, regulation, order, circular, public notice or portal advisory is relevant, use the version legally effective on the transaction date and preserve its amendment or supersession chain.
Decision Steps
- Freeze the relevant date, customs station, goods, person and procedural route.
- Read the current section with definitions, explanations, provisos and cross-references.
- Map delegated legislation, notifications and allied DGFT or partner-agency requirements.
- Test jurisdiction, limitation, conditions, evidence and any burden-of-proof rule.
- Preserve the portal trail but verify the substantive legal entitlement separately.
- Record later amendments, judgments and local procedure before publication or transaction reliance.
Evidence Checklist
- Exact current section
- Transaction chronology
- Supporting commercial records
- Linked rule/notification
- Officer/portal acknowledgements
Common Errors
- Starting with the portal instead of the law
- Ignoring effective dates and local jurisdiction
- Failing to preserve contemporaneous evidence
FAQs
Creates a presumption that duty incidence has been passed to the buyer unless the contrary is proved.
No. Use it as a practical explanation. The current official statute, Gazette instruments, delegated legislation and binding judgments control.
Use contemporaneous pricing, contracts, credit notes, ledgers, cost records, tax treatment and customer evidence; a certificate alone may be insufficient.
Official Sources
India Code - Customs Act, 1962
Source status: DIRECT STATUTE RECORD REQUIRED. Check the exact official section record and amendment chain before quoting verbatim or applying the provision to a live matter.