Interest under section 47 of Customs Act - Crucial date for calculation of - Customs - F. No. 473/72/93-LC

Interest under section 47 of Customs Act - Crucial date for calculation of F. No. 473/72/93-LC Dated 9-5-1994 Government of India Central Board of Excise Customs New Delhi Subject : Customs (Amendment) Act, 1991 - Crucial date for Calculating interest u/s 47 of the Customs Act, 1962 - Instruction reg. As per the provision of section 47 of the Customs Act, 1962, interest is payable on such goods in respect of which Bill of Entry for home consumption has been assessed and returned to the importer but the duty leviable thereon has not been paid within seven days of such return. Certain instances have been brought to the notice of the Board where the Bill of Entry had been filed by the importer but due to some reason or the other the vessels arrived very late or could not get a berth in time with a result that the date of entry inward of the vessel was much after the return of the assessed Bill of Entry. Thus, interest liability arose in respect of such goods even when these goods have not even been landed on the Indian shores. It has been represented that the situation is anomalous and somewhat unjust towards the importer. 2. The matter has accordingly examined by the Board. The Board has observed that in case of prior Bill of Entry, the effective date for determining the rate of duty was the date of entry inward of the vessel. In case where the Bill of Entry were assessed and returned prior to the entry of the vessel, the Bill of Entry were required to be returned to the Customs House for completion of assessment formalities before being returned to the importer for payment of duty. Hence in order to resolve the anomalous situation it has been decided that the relevant date i.e. the date of return of the assessed Bill of Entry should be the date of completion of assessment of the Bill of Entry on its submission to the Customs House after entry inward is granted to the vessel. The period of 7 days for purpose of interest levy should be calculated from this date of finalisation of assessment. 3. The above decision of the Board may be brought to the notice of all concerned for necessary action.