2013 (6) TMI 493 - HC - Customs

Time limit for filing of Bill of Entry - CESTAT found that there is no time-limit prescribed for filing Bill of Entry under Section 46 of the Customs Act, 1962 - held that - it can be seen that Section 46 nowhere provides for any time-limit for filing a bill of entry by an importer upon arrival of goods. It is, of course, true that Section 48 permits the authorities to sell the goods after following the procedure if within thirty days of unloading the same at the customs station, the same are not cleared for home consumption or warehoused or transshipped. This is entirely different from suggesting that under Section 46 of the Act, there is any time-limit prescribed for filing of bill of entry. Section 117 of the Act would not come in picture since it cannot be stated that the importer breached any provision. - decided in favor of assessee.

Summary

Issues:
1. Interpretation of time-limit under Section 48 in relation to Section 46 of the Customs Act, 1962.
2. Existence of time-limit for filing Bill of Entry under Section 46.
3. Imposition of penalty under Section 117 for failure to file Bill of Entry within 30 days.

Analysis:

Issue 1:
The Tribunal's interpretation that the time-limit under Section 48 cannot be applied to Section 46 was challenged. The Appellate Authority reversed penalties imposed under Section 117, stating there was no time-limit for filing a bill of entry under Section 46. The Tribunal upheld this view, emphasizing that Section 46 does not specify a time period for filing a bill of entry. Section 48 allows for the sale of goods if not cleared within 30 days, but this does not imply a time-limit for filing a bill of entry under Section 46. The Tribunal's decision was confirmed by the High Court, dismissing the appeal.

Issue 2:
Section 46 of the Customs Act pertains to the entry of goods on importation. It requires the importer to present a bill of entry for home consumption or warehousing without specifying a time-limit for filing. The Section allows flexibility for presenting a bill of entry after the delivery of import manifest, with no explicit deadline mentioned. The importer must make a declaration regarding the contents of the bill of entry, but there is no prescribed time frame for submission.

Issue 3:
Section 117 of the Act deals with penalties for contravention or failure to comply with provisions not expressly penalized elsewhere. In this case, since Section 46 does not set a time-limit for filing a bill of entry, the importer did not breach any provision warranting penalty under Section 117. The High Court held that as there was no violation, Section 117 did not apply, and thus, the tax appeal was dismissed.

In conclusion, the High Court affirmed that Section 46 does not impose a time-limit for filing a bill of entry upon importation, distinguishing it from the provisions of Section 48 regarding clearance of goods within 30 days. Consequently, the penalty under Section 117 was deemed inapplicable due to the absence of a contravention by the importer.