QUESTION

A manufacturer was allowed duty free import under EPCG scheme notfn no. 102/2009 Bill of entry dated 01.04.2011. They did not fullfilled the export obligation. Now a demand is to be raised, what should be the rate of interest on the duty amount? pleaseexplain suppose duty Rs. 100 was saved on 01.04.2011. will it be 18 % or 15% ? what are the notfns applicable and issued in this regard since 2011?

ANSWER

W.e.f. 01.04.2011 Notification No 17/2011 Cus(NT) was issued under section 28AA of Customs Act that fixes the rate of interest at eighteen percent per annum.

However W.e.f. 01.04.2016 Notification No. 33/2016 - Customs (N. T.) supersedes Notification No. 17/2011- Customs (N.T.) and the rate of interest was fixed at the rate of fifteen percent per annum.

Therefore from 01.04.2011 till 31.03.2016 interest @ 18% pa is charged and from 01.04.2016 onwards interest is charged @ 15% pa. (Reply dt. 03/04/2021)