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 Bill of Entry Finalization: Section 28B of Customs Act Enforces Statutory Interest Payment A query was raised regarding the recovery of interest on a Bill of Entry that was finalized after a delay of 10 years by the Customs Department. The adjudicating authority demanded differential duty with interest, and an appeal with a stay application was filed. According to Section 28B of the Customs Act, 1962, interest is recoverable from the date of provisional assessment. In response, it was clarified that interest is statutorily payable, and there is no remedy to avoid it. However, a recent circular allows for voluntary payment of duty before final assessment for future cases.