CBIC Waives Whole of Interest Payable u/s 47(2) of Customs Act

The Central Board of Indirect Taxes Customs (CBIC) notified the waiver of the whole interest payable under sub-section (2) of section 47 of the Customs Act, 1962 for the period from 1st April 2023 up to and including the 10th April 2023, in respect of such goods, where the payment of import duty is to be made from the amount available in electronic cash ledger.

As per provision under Sub-section, (2) of section 47 of the Customs Act, 1962, the importer shall pay the import duty- (a) on the date of presentation of the bill of entry in the case of self-assessment; or (b) within one day (excluding holidays) from the date on which the bill of entry is returned to him by the proper officer for payment of duty in the case of assessment, reassessment, or provisional assessment.

The Central Government, by notification no. 28/2002-Customs (N.T.) dated the 13th May 2002 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R 359(E) dated the 13th May 2002, fixed the rate of interest at fifteen per cent per annum for section 47.

The third proviso below sub-section (2) of section 47 of the said Act stated that "PROVIDED ALSO that if the Board is satisfied that it is necessary in the public interest so to do, it may, by order for reasons to be recorded, waive the whole or part of any interest payable under this section":

The provisions of section 51A of the said Act read with Customs (Electronic Cash Ledger) Regulations, 2022 are made applicable to deposits from 1st April 2023, other than those exempted by notification no.18/2023-Customs (N.T.) dated30th March 2023 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii) vide number S.O. 1528(E) dated the 30th March 2023;

In a large number of cases, faced the difficulty of being unable to complete the process whereby accounting is made in the duty payment process initiated by them because of unanticipated technical difficulties on the Common Portal and with the authorized banks, from 01.04.2023 onward, as a result whereof, the interest is arising.

The said technical difficulties, arising notwithstanding prior testing, are being resolved by the Directorate General of Systems, as they are encountered, and the new framework is being stabilized, while in the interim, because of said difficulties the interest also accumulates daily in the technical system in giving effect to the provisions of the sub-section (2) of section 47.

In terms of Section 143AA of the said Act, the Board may also for the facilitation of trade take measures to reduce the transaction cost of the clearance. In exercise of the powers conferred by the third proviso below sub-section (2) of section 47 of the Customs Act, 1962, the Central Board of Indirect Taxes and Customs, is satisfied that it is necessary for the public interest so to do.

It was notified that the waiver would be applied on the Common Portal. It was stated that in respect of Bills of Entry for which import duty payment has already occurred and integrated into ICES during the said. period, a claim for a refund of interest shall be subject to the provisions of Section 27 of the Customs Act, 1962.

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