Legal issues regarding the recovery of IGST/customs duty, ...

Invalid Orders for Interest, Fines, and Penalties Under Advance Authorization; CESTAT Annuls Charges Due to Lack of Legal Basis.

September 18, 2024

Case Laws Customs AT

Legal issues regarding the recovery of IGST/customs duty, interest, redemption fine, and penalty in connection with imports made under the Advance Authorization scheme. It states that while provisions exist for recovering IGST u/s 3(7) of the Customs Tariff Act, 1975, there are no specific provisions for recovering interest, fine, and penalty under the same sections. The summary cites Supreme Court judgments emphasizing that interest and penalties can only be levied if the relevant statute expressly provides for it. It concludes that the orders for recovering interest, redemption fine, and penalty in these cases are unsustainable due to the absence of specific legal provisions. Additionally, it addresses the issue of time limitation, stating that the demand is time-barred as there was no suppression of facts, and the extended period u/s 28(4) of the Customs Act, 1962, cannot be invoked. Consequently, the CESTAT (Appellate Tribunal) set aside the impugned orders regarding interest, redemption fine, penalty, and confiscation of goods.

View Source

← Previous Next →

Legal issues regarding the recovery of IGST/customs duty, ...

Invalid Orders for Interest, Fines, and Penalties Under Advance Authorization; CESTAT Annuls Charges Due to Lack of Legal Basis.

September 18, 2024

Case Laws Customs AT

You may also like:

Interest u/s 234C - interest for deferment of advance tax - If on a particular due date for payment of advance tax, the facts show that there is no liability to pay...

The assessee failed to demonstrate that the financial assistance availed on interest was utilized for business purposes without diversion. Where an assessee has...

Interest u/s 234B and 234C charged for default in payment of advance tax - assessee has submitted certificate from the Punjab National Bank that the cheques issued by...

Advances given to 5 persons without charging interest were for business purposes. Non-installation of machinery or renovation in subsequent period due to non-viability...

AO imposed penalty under s.270A for unsubstantiated business expenses including advertising, development, land, and excavation charges, which were disallowed from...

TP adjustment - notional interest - short term advances made by the assessee to its associated enterprises - The assessee being unable to establish with evidence the...

Entitled to registration u/s 12AA and approval under Section 80G - Allegation of charging higher rate of interest from the self help groups in the name of charitable...

Interest expenditure - assessee had availed loan at the interest rate of 12% p.a., whereas, it has advanced loan to a sister concern by charging 9% interest p.a - The...

Disallowance of interest u/s 36(1)(iii) towards interest expenditure - allegation that assessee company diverted its “interest bearing funds” for giving “interest free...

This case pertains to the imposition of penalty u/s 270AA for under-reporting of income due to misreporting. The assessee had availed interest-bearing loans and advanced...

Levy of fine and penalty - Valuation of imported goods - There are no merit in the order of the authorities below in mechanically imposing fine and penalty on the...

Real estate development company advanced loans to its Indian subsidiary for funding step-down foreign subsidiaries undertaking real estate projects. Interest paid on...

The Tribunal reduced the redemption fine and penalty for importing old clothing. Referring to a previous case, it upheld confiscation due to non-compliance but decreased...

Under the SARFAESI Act, a bank's charge takes priority over the State's claim for outstanding dues related to specific land. The High Court held that the charge created...

Penalty u/s 271D or 271E - Penalty u/s.271D or 271E of the Act is concerned, those are independent proceedings and having nothing to do with assessment proceedings or...

Quick Updates: