CIRCULAR NO.64/2000-CUS

F.NO.438/36/99-CUS.IV

GOVERNMENT OF INDIA 
MINISTRY OF FINANCE 
DEPARTMENT OF REVENUE
CENTRAL BOARD OF EXCISE & CUSTOMS

NEW DELHI, THE 26th JULY,2000

Subject:- Levy of interest on delayed payment of duty-relevant date under section 47(2) of the customs Act -reg. -

                    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 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.

(Rajendra Singh)
UNDER SECRETARY TO THE GOVERNMENT OF INDIA