ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 26.08.2025
CESTAT Chennai Quashes βΉ14.95 Lakh Late Fee on Delay in Filling Bill of Entryβ β β β
In a recent decision by the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Chennai, the imposition of a late fee of Rs. 14,95,000 under Section 46(3) of the Customs Act, 1962, was set aside. This case, involving M/s. β ECOM Gill Coffee Trading Pvt. β Ltd., highlights the importance of considering the circumstances leading to delays in filing Bills of Entry and the need for judicious application of late fees. β
Case Background
The dispute arose when M/s. β Vazhavilla Cashews, Kollam, the original importer, failed to clear a consignment of dried raw cashew nuts. β The goods were subsequently sold on a high-seas basis to M/s. β Ambalakkara Cashews, who filed a Bill of Entry on 12.08.2017. β However, due to financial issues, the shipper recalled the original documents and identified M/s. ECOM Gill Coffee Trading Pvt. β Ltd. as the new buyer.
The procedural delays began when the new buyer applied for an amendment to the Import General Manifest (IGM) on 03.11.2017. β The amendment was approved on 12.12.2017, and the earlier Bill of Entry was canceled on 09.01.2018. β The new Bill of Entry was filed promptly on 12.01.2018. β Despite these efforts, the Customs Department imposed a late fee, which was upheld by the Commissioner (Appeals). β This led the appellant to approach the Tribunal.
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 Chennai
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