Interest on re-assessed customs duty was disallowed where the importer paid the balance duty promptly after reassessment.

Interest on re-assessed customs duty was not payable where the enhanced assessable value and balance differential duty had already been determined, but the original Bill of Entry was produced for reassessment only later and the balance duty was paid within five days. Applying Section 47(2) of the Customs Act, the delay was not attributable so as to fasten interest liability on the importer, and the order setting aside interest was upheld.

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Issues: Whether interest was payable on the re-assessed customs duty in the facts of the case.

Analysis: The enhanced assessable value and the resulting balance differential duty had been determined earlier, but the original Bill of Entry was not produced for reassessment until May 2003. The balance duty was paid within five days of reassessment. Applying Section 47(2) of the Customs Act, 1962, the relevant delay, if any, was not attributable so as to fasten interest liability on the importer.

Conclusion: No interest was payable and the order setting aside the interest liability was upheld.

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