Question 21:

MY CLIENT COMMITTED MISTAKE WHILE RAISING COMMERCIAL INVOICE AGAINST EXPORT OF GOODS IN GST REGIME MORE THAN WHAT BANK GUARANTEE AMOUNT, APPROVED BY DEPARTMENT IN JULY-2017 AND INVOICE RAISED IN SETEMBER-2017 FOR YOUR INFORMATION.

DEPARTMENT THREATENING TO ISSUE SHOW CAUSE NOTICE.

IN COMMERCIAL INVOICE , THE CLIENT ADDED FREIGHT CHARGES  TO EACH COMMODITY IN A PROPORTION OF QUANTITY AND THAT IS WHY, ASSESSABLE VALUE OF INVOICE EXCEEDS LIMIT OF PERMITTED ONE.

THERE WAS NEITHER INCREASE OF EXCHANGE RATE. AT THE TIME OF SANCTION FOB VALUE WAS SHOWN AND CLIENT CONSIDERED CIF VALUE, LATER ON. 

PLEASE ADVICE.
ISSUANCE OF SCN IS NOT MATTER BUT DELAY IN RELEASING FUND. 

 Answer:

The mistake of adding freight amount can be explained to the departmental authorities. If they agree it is fine, otherwise the matter will be resolved through adjudication only for which department will have to issue SCN. You can advise your client to be more careful in future while decoding technical issues.

(Reply dt. 20/3/2018)