2024-VIL-55-CESTAT-KOL-CU
  1. Home
  2. 2024-VIL-55-CESTAT-KOL-CU

CUSTOMS CESTAT Cases

Customs – Interpretation of Section 28AA of the Customs Act, 1692 – Import of goods falling under CTH 8607 - Interest liability on short paid Additional Duty/CVD leviable under Section 3(1) of the Customs Tariff Act, 1975 – HELD - Section 28AA of the Customs Act is one of those uncommon provisions of law that starts with a non-obstante clause, thereby giving primacy, prevalence and supreme importance to the provisions so as to hold them as a determinant and a predominant provision in law - sub-Section (1) of Section 28AA makes the imposition of interest as automatic or as an appendage to a case where a duty liability has been fastened under the provisions of Section 28 of the Act - the usage of the words “shall” and “in addition to such duty,” in Section 28AA(1) emphatically indicates the applicability of interest, to a scenario where duty becomes payable thereto – in Section 28AA(1) the words “liable to pay duty” cannot be read in isolation of the remaining part of the phrase, it has to be read in conjunction with the rest of the sentence - what has been further borrowed for the realization of interest payable and applicability as an automatic route, are the structural elements of Section 28. Therefore, the very sub-section itself heralds both leviability and realization of the interest fastened onto the short-paid duty - even the preamble of the law enshrines the incorporation of the interest element, wherever the context calls for, and refers to the terms duty. It is obvious that under no situation can interest be dissociated and held to be non-adjunct to duty. The reference to the words “drawbacks, refunds and exemption from duties” are merely illustrative and cannot be deemed to restrict and foreclose the applicability of rest of the provisions of the Customs laws to the ingredients of the Tariff Act - interest provisions for short paid duty in terms of Section 28AA of the Customs Act, shall equally apply to a case of determination of duty under Section 28 of the Customs Act, be it duty levied under Section 12 of Customs Act or Section 3(3) of the Tariff Act or any other provision thereof or any other law for the time being in force - in view of Section 3 of the Tariff Act read with Section 12 of the Customs Act, the special additional duty is to be construed as Customs Duty and therefore in view of the provisions of the law, all the provisions of the Customs Act and Rules/Regulations made thereunder are squarely applicable to the issue at hand – If the appellants have failed in discharge of their statutory obligations or have been deficient thereto, consequences, advantages and disadvantages thereof shall follow. It is not open for the appellants to have the best of both ends - the impugned order is upheld and appeal is dismissed - Interest under Section 28AA - while interest has been demanded under Section 28AA on the difference in duty amount paid belatedly and as determined from the appellants, the law mandates payment of interest in any case where duty payment was made beyond prescribed timelines. Thus while Section 46 of the Act provides for filing of Bill of Entry upon import of goods, Section 47(1) of the Act permits clearance of non-prohibited goods for home consumption and upon payment of duty as assessed thereon. Section 47(2) of the act ibid which was introduced in 1991, however provides for payment of interest, in case the importer failed to pay the duty within prescribed timelines (these timelines have been revised from time to time). This provision for payment of interest was a part of the statute even during the material time - If the said provisions are applicable to the present case, there can be no escape from payment of interest as applicable
Download File
show more Judgements  

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Biweekly Tax Recap

By Dr. G. Gokul Kishore

Weekly Summary

VIL Video

ISD Vs Cross Charge w.e.f. 1st April '25
By Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?