ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 23.04.2025
CESTAT Mumbai No provision under Customs Act, 1962 empowers officers to collect interest in the absence of duty
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai Bench has allowed the appeal of M/s Lotus Herbals Color Cosmetics, ordering the refund of ₹1,02,818, which was collected as interest without legal authority during EPCG import clearance.
Case Overview:
- The appellant imported a filling machine and parts under Bill of Entry No. 7362042 dated 27.03.2020 at JNPT, Nhava Sheva.
- At the time of filing, they did not possess an EPCG authorisation, which was later issued on 03.06.2020.
- Due to the COVID-19 lockdown, the EPCG licence was submitted after some delay.
- Customs officers allegedly verbally demanded payment of interest for the intervening period.
- The appellant paid ₹1,02,818 as interest vide challan dated 25.06.2020, and the goods were cleared at nil customs duty under Notification No. 16/2015-Cus.
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 Mumbai
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