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TMI Blog2016 (9) TMI 220X X X X Extracts X X X X X X X X Extracts X X X X ..... he month succeeding the month in which duty was expected to be paid by the appellant? – Held that: - Section 28AA (2) of the Customs Act, 1962 mandates the appellant to pay interest from the first date of the month succeeding the month in which duty was expected to be paid by the appellant. This is held in view of the statutory mandate provided under Section 28 AA(2) of the Customs Act, 1962, substituted w.e.f. 18.04.2011 under Section 43 of the Finance Act, 2011 – appeal rejected – decided against appellant. - Appeal No. C/76276/14 - ORDER No. FO/A/75894/2016 - Dated:- 26-8-2016 - Shri H. K. Thakur, Member (Technical) Sri Prosenjit Das, Advocate for the Appellant Sri K. C. Jena, ADC(AR) for the Respondent ORDER Per S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Questions published by department and printed in R.K.Jain s Customs Law Manual 2013-14. That as per these questions/answers EDI system indicates the applicable rate of duty which is checked by Appraising Officers of Customs and confirmed by the Assistant/Deputy Commissioner of Customs. That only on 17.04.2013 DRI, Patna raised the issue that rate of CVD shown in Customs EDI, system @ 6% was wrong and actual CVD payable was @12%. That appellant paid differential duty on 17.05.2013 where as the show cause notice was issued on 23.05.2013. That interest, if any, can be payable w.e.f. 17.04.2013, till the date of payment, which is the date when DRI pointed about the applicable rate of duty. It is the case of the appellant that interest cannot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... person liable to pay duty in terms of section 28 and such interest shall be calculated from the first day of the month succeeding the month in which the duty ought to have been paid or form the date of such erroneous refund, as the case may be, up to the date of payment of such duty. 4.1. As per the provisions of Section 28AA (2) interest payment liability on duty will start from the first day of the month succeeding the month in which the duty ought to have been paid by the importer. It is also relevant to observe that in the present proceedings rate of duty is applied by the EDI system maintained by the department. The bill of entry generated by the EDI system indicating the duty payable is controlled by the appraising staff as per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is purpose and confirmed by the Assistant /Deputy Commissioner of Customs. Q. Whether there is any time limit to pay duty once a Bill of Entry has been assessed? Ans : Duty has to be paid within five days from the date on which the Bill of Entry is returned after assessment to the Importer/Agent for payment of duty. If the duty is not paid within the stipulated time, simple interest (@15% per annum presently) on amount of duty is also payable (Section 47 of the Customs Act 1962) 4.2. From the above prescribed procedure the crucial point required to be answered is whether the rate of duty approved by the EDI system of the department will be said to have been made by the appraising officer or will continue to be a case of self- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .04.2013. 5. In view of the above observations it is held that Section 28AA (2) of the Customs Act, 1962 mandates the appellant to pay interest from the first date of the month succeeding the month in which duty was expected to be paid by the appellant. Argument of the appellant that interest, if any, can be payable w.e.f. 17.04.2013 till the date of payment, which is the date when DRI pointed out the applicable rate of interest, is not an acceptable proposal in view of the statutory mandate provided under Section 28 AA (2) of the Customs Act, 1962, substituted w.e.f. 18.04.2011 under Section 43 of the Finance Act, 2011. Accordingly, appeal filed by the appellant is rejected. ( Pronounced in the open court on 26.08.2016 ) - - TaxT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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