| Date: |
26-07-2000
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| Notification No: |
Customs Circular No 64/2000
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| Issuing Authority: |
Indian Customs
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| Type: |
Circular
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| File No: |
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| Subject: |
Regarding levy of interest on delayed payment of duty-relevant date under section 47(2) of the Customs Act
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Regarding levy of interest on delayed payment of duty-relevant date under
section 47(2) of the Customs Act
Circular No. 64 dated 26th July
2000
I am directed to
invite your attention on the subject mentioned above and to state that a case
was referred to for clarification on certain doubts regarding levy of interest
for delayed payment of duty under Section 47(2) of the Customs Act, 1962 where
the bill of entry for certain imports was assessed provisionally denying
the benefits of EPCG scheme, as EPCG license was not produced at the time of
assessment. The importer did not clear the goods. Subsequently, the importer got
the EPCG license issued and submitted to customs. The bill of entry was
reassessed allowing the benefits of EPCG scheme, thus reducing the duty
liability on the importer. The importer paid the duty so reassessed. A doubt was
raised whether the date of original assessment or date of reassessment would be
relevant for calculation of interest under section 47(2) of Customs Act. Another
doubt raised was whether interest would be charged on originally assessed
amount for the period during date of original assessment to date of reassessment
and on reassessed amount for the period subsequent to reassessment to date of
payment of duty.
2. The
issues have been examined in consultation with the Ministry of Law, Department
of Legal Affairs. It has been clarified that the interest in cases similar to as
cited above would be payable on the reassessed amount for the period 2 days
after the date of original assessment to the date of payment of duty.
3. Kindly acknowledge receipt of
the letter.
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