ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 03.06.2025
CESTAT Kolkata- Interest Not Payable on Pre-2006 Provisional Assessments
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Kolkata Bench has allowed the appeal filed by M/s Century Pulp & Paper, ruling that no interest is payable upon finalization of provisional assessments made before the introduction of Section 18(3) of the Customs Act, 1962.
This decision, issued via Final Order No. 75183/2024 dated 08.02.2024, affirms that interest liability under Section 18(3) is prospective and cannot apply retrospectively to imports assessed provisionally before 13.07.2006, the date on which this provision was inserted via the Taxation Laws (Amendment) Act, 2006.
Case Background
- Appellant: M/s. Century Pulp & Paper
- Issue: Whether interest was payable on customs duty upon final assessment of imports made in 1997-98, assessed provisionally under project import classification (CTH 9801).
- Timeline:
- Goods imported in 1997โ98
- Provisional assessments conducted under the old law
- Reclassification occurred in 2011โ12 due to non-commissioning of the project
- Duty of โน92.83 lakhs was paid post-finalization in 2014
- Interest was demanded by Customs, challenged by the importer
This Article has been written by Shri Ravi Shekhar Jha, Advocate Delhi High Court based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.
Source: CESTAT Kolkata
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