Late filing fee on supplementary Bills of Entry cannot be imposed mechanically where natural bulk cargo variations establish sufficient cause.

Late filing fee under Section 46(3) of the Customs Act read with Regulation 4 of the Bill of Entry Regulations was not warranted for supplementary Bills of Entry covering excess bulk coal arising from natural cargo variations. The original Bills of Entry for manifested quantities were timely filed and duty was paid, while the excess quantity was identified through prescribed procedures due to moisture, physical weighment and draught-survey differences. In the absence of suppression, misdeclaration, revenue loss, deliberate delay or mala fide conduct, late fee need not be imposed mechanically where sufficient cause supports delayed filing. The fee was therefore set aside.

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Issues: Whether late filing fee under Section 46(3) of the Customs Act, 1962 read with Regulation 4 of the Bill of Entry (Electronic Integrated Declaration and Paperless Processing) Regulations, 2018 was leviable on supplementary Bills of Entry filed for excess bulk coal arising from natural cargo variations.

Analysis: The original Bills of Entry covering the manifested quantity were filed within time and the applicable customs duty was paid. The supplementary Bills of Entry were filed after the excess quantity was identified through the prescribed procedure and arose from inherent and unavoidable variations in bulk cargo, including moisture, physical weighment and draught survey differences. There was no suppression, misdeclaration, revenue loss, deliberate delay or mala fide conduct. Section 46(3), read with Regulation 4, does not require late fee to be imposed mechanically where sufficient cause for delayed filing is established and permits waiver in deserving cases. The levy was therefore inconsistent with the appellant's bona fide conduct and the circumstances of the import.

Conclusion: The late filing fee imposed on the appellant was legally unsustainable and was set aside.

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