Kai International Private Limited Vs Commissioner of Customs (Preventive) (CESTAT Kolkata)
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Kolkata, adjudicated appeals filed by the appellant against the imposition of late fees under Regulation 4(3) of the Bill of Entry (Electronic Integrated Declaration) Regulations, 2018 read with Section 46(3) of the Customs Act, 1962. The late fees were imposed on supplementary Bills of Entry filed beyond the prescribed time limit and were upheld by the lower appellate authority.
The facts indicate that the appellant had initially filed original Bills of Entry within the stipulated time for clearance of consignments of steam coal. Subsequently, based on a Draft Surveyor’s Report, excess quantities of coal were found at the port. The appellant sought amendment of the Import General Manifest (IGM) and the original Bills of Entry and expressed willingness to pay duty on the excess quantity. However, the Proper Officer did not permit such amendments. Consequently, the appellant filed supplementary Bills of Entry for the excess quantity, which led to imposition of late fees due to delayed filing.
The appellant contended that the delay in filing supplementary Bills of Entry was not attributable to any fault on its part, as the excess quantity was part of the same consignments already declared. It argued that the Proper Officer had the discretion under Section 46(3) of the Customs Act to waive late fees in deserving cases. The appellant also relied on case law and departmental guidelines, including a Standard Operating Procedure, to assert that penalties should not be imposed mechanically and must consider the circumstances.
