Delay in Finalization of Bill of Entry recover of Interest.

[vinay wakde]

The provisional Bill of Entries are finalized after long period i.e. after 10 years by the Customs Department. The final Order passed by the adjudicating authority demanding differential duty with Interest.  The Appeal & Stay application against the Order has been filed by us.

As per Section 28B of Customs Act, 1962, the Interest shall be recovered by the Customs Department from the date of Bill of Entry provisionally assessed till date of payment. The delay i.e. more than 10 years for finalization the Bill of Entries is done by the Department. Whether  Interest shall be recovered from us as per the Section 28B of Customs Act, 1962, or any other remedy to save interest.

Regards,

VINAY

[YAGAY andSUN]

There is no way out.  Since the Interest is statutorily payable, you would have to pay it.  However, now, Department of Revenue, has come with a circular regarding Voluntary payment of duty before final assessment.  Kindly check Circular No.40/2011-Customs dated 09-09-2011 in this regard.  But for previous period you would have to pay the interest.

AI Summary

Interest recovery on delayed finalization: statutory interest remains payable despite prolonged provisional assessment, limited prospective relief. Delay in finalization of provisional bills of entry results in statutory interest liability from provisional assessment to payment; interest is a statutory obligation tied to finalization rather than an equitable penalty for departmental delay. Subsequent administrative guidance allowing voluntary payment before final assessment may prevent further interest accrual prospectively, but does not eliminate interest already accrued for prior periods absent a specific retrospective relief measure.