Late filing charges cannot be sustained when system error and COVID-excluded time prevent delay being attributed to the importer.

Late filing charges were held unsustainable where advance Bills of Entry had been filed in time but later disappeared from the ICEGATE system due to a systemic error, because the importer could not be made responsible for non-availability caused by the electronic system. The COVID-19 period also could not be counted as delay, as the relevant time fell within the judicially excluded limitation window. On these facts, relief from late filing charges was upheld and the Revenue challenge failed.

---

---

Issues: (i) Whether late filing charges were leviable when the advance Bills of Entry disappeared from the ICEGATE system due to a system error; (ii) Whether the period affected by the COVID-19 pandemic could be counted as delay for the purpose of imposing late filing charges.

Issue (i): Whether late filing charges were leviable when the advance Bills of Entry disappeared from the ICEGATE system due to a system error.

Analysis: The advance Bills of Entry had been filed within time, but were not available in the electronic system when the importer later attempted clearance. The disappearance was found to be attributable to a systemic error and not to any omission on the part of the importer. In such circumstances, the importer could not be fastened with responsibility for the non-availability of the documents in the system, and the order granting relief from late filing charges was held to be justified.

Conclusion: The issue was decided in favour of the assessee, and the late filing charges were not leviable on this ground.

Issue (ii): Whether the period affected by the COVID-19 pandemic could be counted as delay for the purpose of imposing late filing charges.

Analysis: The relevant period fell within the time during which limitation was extended in view of the COVID-19 pandemic. The excluded period could not be treated as delay attributable to the importer for counting late filing consequences. This further supported the conclusion that the late charges were not sustainable.

Conclusion: The issue was decided in favour of the assessee, and the COVID-affected period could not be treated as delay against the importer.

Final Conclusion: The order granting relief from late filing charges was upheld, and the Revenue's challenge failed.

Ratio Decidendi: Where advance import declarations are lost from the electronic system due to systemic error and the relevant period is covered by a judicially excluded COVID-19 limitation window, late filing charges cannot be sustained against the importer absent fault on its part.

---