Section 28AB - Interest on delayed payment of duty in special cases [Omitted]

Interest on delayed customs duty accrues from the month after default and is adjusted to the duty finally determined on appeal.

Interest is payable where customs duty was not levied, short levied, short paid or erroneously refunded; it accrues at a rate fixed by the Central Government within specified bounds from the month following the month the duty ought to have been paid or from the erroneous refund date until payment. A voluntary full payment made within forty five days of an order under section 151A, without reserving appeal rights, avoids interest; otherwise interest applies to the whole amount. The provision excludes cases where duty or interest became payable before assent to the Finance Bill, 2001. Appellate reductions or increases adjust the interestable amount accordingly.