Interest and penalties not imposable on demand of Customs, CVD, SAD

Last updated: 12 August 2023
Quick Summary
The Supreme Court has dismissed an appeal by the Revenue Department, upholding a Gujarat High Court decision. This ruling clarifies that interest and penalties cannot be imposed on demands for customs duty, Countervailing Duty (CVD), and Special Additional Duty (SAD) if there isn't a specific legal provision authorising it. The court emphasised that the machinery provisions of the Customs Act cannot be used to enlarge the scope of penalty and interest under the Customs Tariff Act.

Court :
Supreme Court of India

Brief :
The Hon'ble Supreme Court in Union of India & Ors. v. Mahindra and Mahindra Ltd. [Special Leave Petition (Civil) Diary No. 18824 of 2023 dated July 28, 2023] dismissed the appeal filed by the Revenue Department and upheld the decision of the Hon'ble Gujarat High Court of setting aside the imposition of interest and penalty on custom duty, CVD, being without jurisdiction. 

Citation :
Special Leave Petition (Civil) Diary No. 18824 of 2023 dated July 28, 2023

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Bimal Jain
Published in GST
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