2026 (3) TMI 1545 - AT - Customs

Bona fide delay in supplementary Bills of Entry can justify waiver of late fee, with discretion applied judiciously.

Late fee for delayed filing of supplementary Bills of Entry is not to be imposed mechanically where the excess cargo forms part of the same imported ... Validity of Late fee on the supplementary Bills of Entry - sufficient cause - bona fide conduct - Judicious exercise of discretion under Section 46(3) - non-mechanical imposition of late fee. Waiver of late fee for delayed Bill of Entry - HELD THAT: - The Tribunal held that the second proviso to Section 46(3) confers discretion on the proper officer in the matter of late charges and does not mandate routine levy in every case of delayed presentation. On the facts found, the appellant had already filed the original Bills of Entry within the stipulated time and the excess cargo detected later formed part of the same consignments. Since the delay in filing the supplementary Bills of Entry was not due to any act or fault of the appellant, the case was held to be fit for waiver. The Board circular and the departmental SOP were also noticed as indicating that such charges, fines or penalties are to be imposed judiciously and not mechanically. The Tribunal found the principle in Blueleaf Trading Company [2019 (5) TMI 672 - CESTAT CHENNAI] squarely applicable. [Paras 8, 9, 10, 11] The late fee imposed on the appellant was waived and the impugned orders were set aside to that extent. Final Conclusion: The Tribunal held that late fee could not be mechanically levied on the supplementary Bills of Entry in the facts of the case, as the delay was not attributable to the appellant and the statute permitted waiver in deserving cases. The impugned orders were set aside qua imposition of late fee and the appeals were allowed with consequential relief. Issues: Whether late fee for delayed filing of supplementary Bills of Entry was leviable when the excess cargo formed part of the same imported consignments and the delay was not attributable to any fault of the importer.Analysis: Section 46(3) of the Customs Act, 1962 and Regulation 4(3) of the Bill of Entry (Electronic Integrated Declaration) Regulations, 2018 permit levy of late charges only where the proper officer is not satisfied with the cause shown for delay, and the discretion is to be exercised judiciously. On the facts, the original Bills of Entry had been filed in time, the excess quantity was discovered later during survey, and the importer had sought amendment and offered duty on the excess goods. The delay in filing the supplementary Bills of Entry was therefore not treated as a default arising from any fault or lack of bona fides on the importer's part. The cited departmental circular also supported non-mechanical handling of such matters and recognition of the officer's discretion in suitable cases.Conclusion: The late fee was held to be unwarranted and was waived, and the impugned orders imposing such fee were set aside in favour of the assessee.Ratio Decidendi: Where delayed presentation of a Bill of Entry is explained by bona fide circumstances and no fault is attributable to the importer, the proper officer may waive late charges and such levy should not be imposed mechanically.