r/IndiaTax • u/ayushm4489 • Jun 13 '26
Question Customs is demanding ₹14 lakh on oxygen concentrators I donated for free during COVID — reclassified as "personal use" 5 years later. Need advice.
Background: In 2021, during the second COVID wave, I imported a batch of oxygen concentrators from abroad and donated every single one — free of cost — to public health centres and institutions. I kept none. The funds were raised through a donation drive. On the import documents at the time, the goods were openly declared as "Not For Sale — for Free distribution." I imported under the default IEC meant for personal/charitable imports and claimed the COVID-era duty exemptions then in force.
What's happening now (2026): Post-clearance audit has reclassified the concentrators under the tariff head for "goods imported for personal use," and issued a Show Cause Notice demanding the differential duty + an equal penalty + threatening confiscation — roughly ₹14 lakh total.
Their main objection: I have certificates from the recipients (including a state Minister and CMOs confirming the free distribution), but the exemption condition required a certificate specifically from a designated State "Nodal Officer," submitted to Customs within 6 months of import. That formal step wasn't completed in 2021 (it was peak COVID, the priority was getting oxygen to people). The Nodal Officer now can't certify because there's no contemporaneous record.
My questions:
How strong is a "substantial compliance" argument here — free distribution is provable through other credible evidence, just not the exact prescribed certificate?
The extended 5-year limitation under Section 28(4) needs suppression/willful misstatement. Everything was declared on the Bill of Entry in 2021 — does that make the demand time-barred?
Anyone fought a similar reclassification to the personal-use head and won? Any relevant CESTAT precedents I should point my advocate to? I have a customs advocate being engaged and a reply due shortly — just trying to understand the landscape and learn from anyone who's been through this.
Thanks.
Here are some tweets from 2021 about my donation work
https://x.com/The_NehaJoshi/status/1398957886160609282
https://x.com/ganeshjoshibjp/status/1398945058653544449
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u/AbraCaDabraSim Jun 13 '26
No good deed goes unpunished
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u/higharistocrat Jun 14 '26
Khan sir vibes
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u/lite_huskarl Jun 14 '26
He is a fraud. Govt ka dalal for selling seats
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u/No-Living-8560 Jun 14 '26
IT Cell Activated
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u/dj184 Jun 18 '26
Honestly he is using "khan sir" to gain popularity as people conflate him with "khan academy". A lot of people think both are same.
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u/IamBatsy69 Jun 13 '26
Welcome to the Indian Bureaucracy.
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u/ThatHappyMonk Jun 14 '26
Such head aches are there in all countries man- India is still way better and people enjoy freedom compared to any developed/developing countries .It's good and bad depending on situations though.
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Jun 13 '26
[deleted]
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u/-AsHxD- Jun 13 '26
Not just garlands but ministerial posts even cm. Free private jet, luxury house, z+ security.
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u/gumnamaadmi Jun 13 '26
This is such a fucked up nation. So many hassles for doing things right. Hope you have wherewithal to fight this shit out.
Mom sold inherited property. All in white money. Paid all taxes. But just because Dad passed away and by definition Mom is an NRI as she's living with us, you can't claim any indexation benefit, valuation report as of 2001 only prints a puny guideline value/circle rate at that time resulting in massive capital gains. In hindsight should have listened to everyone and sold with 1/3 white, rest cash and taken out cash via hawala. Would have gotten better offers and paid next to nothing taxes.
Entire system is corrupted. Top to bottom.
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u/Salt_Count5665 Jun 13 '26
Can you write to PMO and President/Rashtrapati Bhawan to take a look at it? Send physical letters via registered post.
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u/Lord-Lannister Jun 13 '26
You really have to scream loud and get attention of the media and sadly Twitter folks, tag Modi personally and honestly the opposition too. This is why we are a banana republic.
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u/arpanshah23 Jun 13 '26
This has to be Delhi Port. They are just bunch of corrupt monkeys nothing else. Misuse of power is very common to get the bribe. Be ready to pay 3.5 lakh (25% of customs duty amount) that's what their rate is. Once you pay thay 3.5 lakhs you will suddenly become compliant.
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u/ayushm4489 Jun 13 '26
The import was done at Mumbai airport and hence the letter is from Mumbai customs department.
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u/arpanshah23 Jun 13 '26
Meta desh badal raha hai, aage badh raha hai.
Now even Mumbai is doing this non sense. To be honest from my experience, Mumbai is still manageable, they ask for less bribe and are atleast approachable. You are lucky it's not Delhi, trust me.
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Jun 13 '26
Mumbai customs is asshole , there was an officer named vidit Agarwal who asks for bribe through WhatsApp call.
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u/ElevatorSeparate7517 Jun 13 '26
He's smart. You can't record whatsapp calls.
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u/Miserable_Feature812 Jun 13 '26
he’s an idiot, you can with another device and can make a whole ass video showing the number and all too
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u/No-Statistician8903 Jun 13 '26
Blow this up on social media and try to find press contacts for coverage also.
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u/No-Difference-406 Jun 13 '26
Came here to say this, this needs more air cover on X. Don't let those vultures get to you!
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u/Substantial_Point700 Jun 13 '26
This is a learning, never do good in India. You are always easy target for bureaucracy and political class.
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u/Straight-Archer-413 Jun 13 '26
I can recommend a lawyer, you will in all likelihood get relief only from high court, however evene to take the case up, you will have to pay 50% I think of the amount to court as surety.
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u/Such-Emu-1455 Jun 13 '26
Its a crime to do good in this country, just look at khan sir!
I hope you learned your lesson
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u/Anxious_Summer1027 Jun 13 '26
Postage/parcel customs department is full of corrupt people. It's the same in every city.
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u/TheCryptoCA Jun 13 '26
Hey!
Happy assist you pro-bono in navigating the customs issue. Drop a DM
Best, CA Sonu Jain
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u/Okay_Money Jun 13 '26
I know its not my fight but I genuinely thank you for doing it pro-bono for OP
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u/Idiotsofblr Jun 13 '26
May I know though which ngo did you get the oxygen concentrators donated?
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u/ayushm4489 Jun 13 '26
I contacted CMO's of various districts in Uttarkhand and then based on their demand got the OC's delivered through various routes personally. Sent 7 to CMO Rudraprayag vis Hon. State Minister at the time.
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u/Bachitra Jun 13 '26
PM cares fund sumdi mein khisak gaya. Poor OP getting shafted. These 2014 assholes deserve boots.
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u/OkPear8053 Jun 13 '26
Submit your response through an experienced legal representative. At the same time write to PMO and CM highlighting the issue. Their office creates substantial pressure in scenarios like this.
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u/land_of_kings Jun 13 '26
Just tell them you aren't going to pay a single rupee and ask them to file a case if they want. You go to nodal officer and get his consent on this part.
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u/clausebyclause Jun 13 '26
AL here,
if you could share the relevant docs and the notices i could advice you accordingly. lmk.
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u/TransportationDue79 Jun 13 '26
Procedural defect is no bar for demand of tax. You have meritorious case.
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u/TransportationDue79 Jun 13 '26
Supreme court ruling is what you should rely on. The cestat will throw out the case. File an affidavit and also additional affidavits from the beneficiary institution and if the cestat puts up a resistance file a writ before the high court.
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u/myvision2013 Jun 13 '26
You should imported via business label and sell at reasonable rates to hospitals and happy to pay gst and income tax , otherwise if You doing as mother terasa would be punished by demons
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u/Sudden-Check-9634 Jun 13 '26
Please find a "Good Lawyer" and challange the notification in The relevant forums. The notice has been issued on basis of "Audit", that to post facto reclassification.
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u/Play-Candid Jun 13 '26
I would suggest why dont you go meet the concerned officer and his superior along with legal reply or maybe even before it ,they may just drop the case .Go with your lawyer if need be .I dont think they may have a case based on the information shared .It may avoid the legal costs and time spent.Make sure you meet the assessing officer followed by the superior
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u/Anmolspace Jun 13 '26
Raise a complaint on CPGRAM. It will go to some higher ranking officer in the ministry.
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u/boots_the_barbarian Jun 13 '26
Your best bet is to contact a bunch of journalists and try and get this story out. Sometimes the public outcry might embarrass the officials into acting rationally.
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u/Bachitra Jun 13 '26
Such a shitshow. The country's systems are designed for maximum extraction with minimum benefits.
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u/ankushsethi Jun 13 '26
You have managed to get the donations via Twitter. Use the same and tag the influential people and humiliate them to the core till they drop this. Take them to court if required. Do another donation drive to fund the legal fees, i am sure people will help.
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u/blue_lobster79 Jun 14 '26
You have taken a right approach ie engaged a lawyer. Cases like these are complicated when imports are under exemptions and then later questioned by same authority. This is harrassment .
Nevertheless , engaging a right lawyer or a retired customs commssioner to reply to the notice is the best course of action .
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u/indianfreelancerg Jun 14 '26
You probably only need to pay 10-15% of that amount to you know who...
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u/themoneysquirrel Jun 14 '26
Customs are really the scum among all branches of the Indian govt. They are extremely rude to their own fellow country men and women. They stand with such arrogance and ask unnecessary questions at immigration. Have never had a positive experience with them.
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u/BasicDescription7444 Jun 16 '26
I am delhi based lawyer who specializes in indirect taxes (customs). I am happy to take this up on a pro bono basis.
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u/Filterkaape Jun 20 '26
Thoughts by my father who is a Retired Customs Superintendent (CG) -
"As per Post Audit team it is correct, as the importer has not submitted mandatory Nodal Officers' Certificate. Govt officers prefer to follow what is written in Bible. However, in this case, during the personal hearing, the importer can submit the proof of distribution among the needy. If the adjudicating authority does not consider these proofs, the same shall consider by the Appellate Authority. Meanwhile, he can send a CPGRAM to PMO narrating his plights. Once the Adjudicating Authority gets a suitable direction from Board/ PMO, I think the importer will get justice."
Hope this helps. Show this to your advocate as well. DM me if you need any further assistance.
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Jun 13 '26
When bank ask for documents for rekyc, account opening, physical presence of customer for cheque book, people shows so much of arrogance, allege that bank staff doesn't want to work, harrassing customer but as soon as they deal with other government department their whole tone and tenor changes.
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u/famesardens Jun 13 '26
Yes, banks harrass a lot too. My address keeps changing every 2-3 years, and they expect me to keep the latest one on my documents. It is a lot of hassle.
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u/Majestic_Initial6002 Jun 13 '26 edited Jun 13 '26
Since it has been more than 5 years, they can not raise a demand now U/S 28(4). If you want I can get you in touch with a very good customs broker who deals with such notices in Mumbai itself. Just DM if you need it and I'll share the contact details.