Endorsement on bill of entry amount to raising demand under customs law and not mere a provisional assessment

Brief of the case:

The Hon’ble Supreme Court in the case of M/s Swastika Enterprise held that the endorsement on the bill of entry to pay additional customs duty is a demand and not mere a provisional assessment. Thus, the duty payable due to such endorsement can be settled as settlement of demand under indirect taxes demand settlement scheme.

Facts of the case:

• The assessee imported old ships and filed a bill entry for clearance of the same form the port of import.In the bill of entry, it claimed exemption from the payment of ‘additional customs duty’ under an exemption notification. Custom authorities found assessee not eligible for the exemption and accordingly, returned the bill of entry by making an endorsement to pay additional customs duty.

Please become a Premium member. If you are already a Premium member, login here to access the full content.