Late Fee on Supplementary BoE Unsustainable in absence of Default Made by Importer and Filed Original Bills: CESTAT [Read Order]
CESTAT reiterates that late fee cannot be imposed mechanically where delay is not attributable to the importer.
![Late Fee on Supplementary BoE Unsustainable in absence of Default Made by Importer and Filed Original Bills: CESTAT [Read Order]](https://images.taxscan.in/h-upload/2026/04/06/2132247-late-fee-on-supplementary-boe-unsustainablejpg.webp "Late Fee on Supplementary BoE Unsustainable in absence of Default Made by Importer and Filed Original Bills: CESTAT [Read Order]")
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) Kolkata Bench, held that imposition of late fee for delayed filing of Supplementary Bills of Entry cannot be sustained if no default is attributable to the importer. The Tribunal set aside the impugned orders imposing late fees under Section 46(3) of the Customs Act, 1962, holding that such levy is not automatic and...
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) Kolkata Bench, held that imposition of late fee for delayed filing of Supplementary Bills of Entry cannot be sustained if no default is attributable to the importer.
The Tribunal set aside the impugned orders imposing late fees under Section 46(3) of the Customs Act, 1962, holding that such levy is not automatic and must be exercised judiciously. The Tribunal held that a waiver of late fees is due in this case based on the bona fide behavior of the importer.
The appellant Kai International Private Limited had imported consignments of steam coal and duly filed original Bills of Entry within the prescribed time.After the clearances a Draft Survey revealed excess quantities of coal imported to the port.
Further, the importer applied for amendments to the Import General Manifest (IGM) and the Bills of Entry for the excess imported goods and expressed a willingness to pay duty on the excess goods. However, the department did not allow the amendments, and the importer was compelled to file Supplementary Bills of Entry after the due date.
The appellant contended that the delay was not attributable to them but arose due to post-clearance detection of excess cargo. It was argued that Section 46(3) empowers the Proper Officer to waive late fees in deserving cases and that the authorities failed to exercise such discretion.
However, the Revenue, on their part, submitted that the delay in filing Supplementary Bills of Entry attracts late fees under the provisions.
The Tribunal comprising K. Anpazhakan (Technical Member) held that the appellant had filed original Bills of Entry bona fide, and there was no fault on their part in the delay in filing supplementary documents which was due to circumstances beyond their control.
The Tribunal highlighted that late fee under Section 46(3) is discretionary in nature and cannot be levied as a matter of course without looking at the causes of delay.
Accordingly, the appeals were allowed with consequential relief.
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