Customs

1.Limitation.- If customs duty happens to be paid short-paid or excess paid, there is provision to demand from, or refund to, the importer the differential amount provided the demand or the claim for refund is made within one year from payment of duty. In case of goods exempted by special order under Section 25(2), the limitation of one year will be computed from the date of issue of such orde4r. In case where the duty was paid provisionally, the limitation for refund shall be computed from the date of adjustment of duty after the final assessment thereof. Limitation for refund arising out of any order or judgment starts from the date of such order or judgment. Refnd claims for duty and interest should be filed according to the instructions and in the new format prescribed by 1995 Regulations. For normal time limit cases, Section 28 permits the assessee to pay the duty with interest voluntarily before issue of the demand show cause notice and in non-fraud cases no such notice will be issued.

2.Unjust enrichment- (i) In the matter of refund there is an additional restriction introduced since 20.09.1991 that refund would not be given to the importer or exporter if he has passed on the incidence of duty to another person. Interest on delayed payment of duty or on delayed refund/drawback of duty- (i) Sections 27A, 28AA and 75A of Customs Act, 1962 provide for charging of interest on delayed payment of customs duty and payment of interest on delayed refunds/ drawback of duty. No interest will be chargeable or payable in respect of fines and penalties. It will be a simple interest. Rate of interest will be fixed by the Central Government between the lower limit of 10% and upper limit of 36%. Same rate is applicable to interest payable under Section 47 and 59 also.