RECOVERY OF DUTY AND INTEREST NOT LEVIED OR SHORT LEVIED
OR ERRONEOUSLY REFUNDED
A.
When any duty or interest has not been levied or has been short levied or
erroneously refunded, the proper officer may issue a notice to the person
concerned requesting him to show cause as to why he should not pay the amount,
indicating the reasons for such notice.
This notice has to be issued
within one year in the case of imports made by any individual for his personal
use or by the government or by any educational, research or charitable
institutions or hospital.
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A.
Relevant date means:
a)
In a case where duty is not levied, or interest is not charged the date
on which a proper officer makes an order for the clearance of the goods.
b)
In a case where duty is provisionally assessed under section 18 of the Customs Act, 1962, the date
of adjustment of duty after the final assessment thereof;
c)
In a case where duty or interest has been erroneously refunded the date
of refund.
d)
In any other case, the date of payment of duty or interest.
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Q.3
Can such time limit be
extended for any reason?
A.
For issue of such notice the time limit of one-year/six months may be
extended to five years if it is found that the non-levy/short levy/erroneous
refund was by reason of collusion or any willful misstatement or suppression of
facts by the importer or exporter or their agent or employee.(Proviso to Section 28 of the Customs Act 1962)
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Q.4
How are such cases
adjudicated?
A.
The proper officer after hearing the person/firm, to whom the such notice
is issued, either in writing or in person, the proper officer shall determine
the amount of duty or interest due and there upon the person concern shall pay
the amount so determined.
(Section28 (1) and 28(2) of the Customs
Act, 1962).
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Q.5
If the person fails to pay
the said duty what action does the Department take?
A.
If the person concerned fails to pay the amount of duty/interest
determined by the proper officer, the department may proceed to recover the
amount due in terms of Section 142 of the
Customs Act, 1962, read with the Customs (Attachment of property of Defaulters for recovery of
Government dues) Rules, 1995
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A.
Yes; Where a person fails to pay the duty determined under Section 28(2) of the Customs Act, 1962 within
three months from the date of such determination, interest is payable in
addition to the duty. Section 28AA of the Customs Act, 1962
provides to charge interest at rate not below 10 percent and not exceeding 30
percent per annum. However,
effective rate of interest is fixed at 20 percent per annum by Notification No.33/95-cus; (NT) dated
26th day of May 1995.
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A.
As per provision to Section 28 of the
Customs Act, 1962, where any duty has not been levied or has been
short levied or the interest has not been charged or has been part paid or the
duty or interest has been erroneously refunded by reason of collusion or any
willful misstatement or suppression of facts by the importer or exporter or
their agent or employee, notice for recovery can be issued by extending the time
limit to five years.
In addition to the amount
payable, interest and penalty on such determined amount are also payable in such
cases.
INTEREST: As per Section 28AB, the person who is liable to pay
duty is liable to pay interest. The
interest is payable from the first day of the month succeeding the month in
which the duty ought to have been paid.
This provision shall not apply to the cases where the duty became payable
before the date on which the Finance (No.2) Bill, 1966 received the assent of
the President.
PENALTY: As per Section 114 A of the Customs Act, 1962 the
person who is liable to pay duty or interest as determined under sub section (2)
of Section 28 of the said Act is also viable to pay Penalty equal to the duty or
interest so determined.
The penalty payable under this
section is in addition to the penalty if any, levied under Section 112 or Section 114 of the said Act.
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