Late fee on supplementary Bills of Entry waived where delay was bona fide and not mechanically taxable.

Late fee for filing supplementary Bills of Entry under Regulation 4(3) of the Bill of Entry (Electronic Integrated Declaration) Regulations, 2018, read with Section 46(3) of the Customs Act, was treated as discretionary rather than automatic. Where the original Bills of Entry were filed in time and the supplementary filings followed discovery of excess coal during draft survey, the delay was found not attributable to any fault of the importer. The second proviso to Section 46(3) permits waiver where the Proper Officer is satisfied that the cause shown is bona fide and sufficient, and the Board circular and departmental SOP support a non-mechanical approach to levy. On those facts, the late fee was found unwarranted and the charge was waived.

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Issues: Whether the late fee imposed for filing supplementary Bills of Entry under Regulation 4(3) of the Bill of Entry (Electronic Integrated Declaration) Regulations, 2018 read with Section 46(3) of the Customs Act, 1962 was sustainable, and whether the Proper Officer was justified in waiving the charge in the facts of the case.

Analysis: The original Bills of Entry had been filed within time, and the supplementary Bills of Entry were filed only after excess coal was found during draft survey and the importer sought amendment of the earlier documents and was willing to pay duty on the excess quantity. On these facts, the delay was held not to be attributable to any fault on the part of the importer. The second proviso to Section 46(3) contemplates late charges only where the Proper Officer is not satisfied with the cause shown, and thus confers discretion to waive the charge in deserving cases. The decision also relied on the Board circular and the departmental SOP to hold that such charges are not to be imposed mechanically, and that the cited precedent supports a judicious and bona fide-based approach.

Conclusion: The late fee was held to be unwarranted and unsustainable, and waiver of the charge was justified.

Final Conclusion: The impugned orders were set aside insofar as they sustained late fee, and the appeals were allowed with consequential relief.

Ratio Decidendi: Where the delay in presenting a Bill of Entry is supported by a bona fide and sufficient cause and the Proper Officer is not satisfied that the charge should be levied, late fee cannot be imposed as a matter of routine and may be waived in the exercise of statutory discretion.

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