Customs Act, 1962 › Chapter V — Levy of, and Exemption from, Customs Duties

Section 28AA. Interest on delayed payment of duty

Customs Act, 1962

Bare Act

Interest on delayed payment of duty. —

(1) Notwithstanding anything contained in any judgment, decree, order or direction of any court, Appellate Tribunal or any authority or in any other provision of this Act or the rules made thereunder, the person, who is liable to pay duty in accordance with the provisions of section 28, shall, in addition to such duty, be liable to pay interest, if any, at the rate fixed under sub-section (2), whether such payment is made voluntarily or after determination of the duty under that section.

(2) Interest at such rate not below ten per cent. and not exceeding thirty-six per cent. per annum, as the Central Government may, by notification in the Official Gazette, fix, shall be paid by the person liable to pay duty in terms of section 28 and such interest shall be calculated from the first day of the month succeeding the month in which the duty ought to have been paid or from the date of such erroneous refund, as the case may be, up to the date of payment of such duty.

(3) Notwithstanding anything contained in sub-section (1), no interest shall be payable where,-

(a) the duty becomes payable consequent to the issue of an order, instruction or direction by the Board under section 151A; and

(b) such amount of duty is voluntarily paid in full, within forty-five days from the date of issue of such order, instruction or direction, without reserving any right to appeal against the said payment at any subsequent stage of such payment.

Judgments on Section 28AA

  • Vishnu Chemicals Ltd vs Principle Of Commissioner Of Customs… — CESTAT, 3 Sep 2026. Fulfilment of export obligation under an Advance Authorisation cannot erase an actual breach of the pre-import condition, but for imports from 13.10.2017 to 09.01.2019 interest, confiscation, redemption fine and penalty…
  • Imperial Fibres Pvt Ltd vs Mundra — CESTAT, 31 Aug 2026. The extended period under Section 28(4) of the Customs Act cannot be invoked, and a beneficial exemption cannot be denied, where the department's delayed, partial and unauthenticated foreign verification of Certificates…
  • Balaji Niryat Pvt Ltd vs Kolkata-Port — CESTAT, 22 Jul 2026. Preferential tariff treatment under a trade agreement cannot be denied merely because the overseas supplier failed to cooperate in an origin verification, where the Certificates of Origin covering the importer's own…
  • Mahesh Agarwal Partner vs Cc Sea Ch - Ii — CESTAT, 13 Mar 2026. Where higher-value parallel documents are recovered from the importer's own possession and corroborated by voluntary Section 108 admissions and extra-commercial payments, declared transaction value may be rejected, the…
  • M/S Xiaomi Technology India Private… vs Commissioner Of Customs Air… — CESTAT, 14 Nov 2025. Royalty and licence fee paid by an importer under agreements with IPR holders, not disclosed to the customs authorities, is includible in the assessable value under Rule 10(1)(c) of the Customs Valuation Rules, 2007,…
  • Van Oord India Pvt Ltd vs Customs Ahmedabad — CESTAT, 13 Nov 2025. Physical non-availability of goods is no bar to confiscation under Section 111 or redemption fine under Section 125, but the fine must be commensurate with the duty benefit actually accrued, and a Section 114AA penalty…
  • A. R. Sulphonates Private Limited vs Union Of India Thr. The Secretary… — Bombay High Court, 9 Apr 2025. The amendment to Section 3(12) of the Customs Tariff Act, 1975 by the Finance (No. 2) Act, 2024 — importing the Customs Act's interest, offence and penalty provisions into IGST levied under Section 3(7) — is prospective…
  • M/S.N.C.Alexender vs The Commissioner Of Customs — Madras High Court, 9 Jun 2022. Show cause notices and adjudication orders issued by DRI officers are valid because they are appointed as 'Officers of Customs' under Section 4 of the Customs Act, 1962, and Section 97 of the Finance Act, 2022…
  • Messrs. Siddhi Vinayak Enterprises And… vs The Union Of India Through The Secretary… — Bombay High Court, 4 Apr 2017. Once the 14-day period under section 127C(1) expires without an admissibility order, a settlement application is deemed allowed to be proceeded with, and the Settlement Commission cannot thereafter reject it as…
  • Swati Menthol & Allied Chemicals Ltd & vs Joint Director - Directorate Of Revenue… — Gujarat High Court, 8 Jan 2014. A DRI officer to whom a notification (such as that dated 6.7.2011) specifically assigns functions under sections 17 and 28 for the purposes of section 2(34) is a 'proper officer' competent to issue a show cause notice…
  • Jaiprakash Associates Limited vs The Office Of The Commissioner Of… — Delhi High Court, 2 Sep 2026. Once a Resolution Plan is approved under Section 31(1) of the IBC, a pre-CIRP customs claim that was never submitted during the CIRP stands extinguished and cannot be enforced against the Corporate Debtor, Section 238…
  • Himalyani Gupta vs Commissioner Of Customs (Air Cargo… — CESTAT, 24 Aug 2026. Section 113 authorises confiscation of only 'export goods' (section 2(19)) — once goods are exported they cease to be export goods and become exported goods — so penalties under sections 114 and 114AA cannot stand…
  • Commissioner Of Customs-Nhava Sheva - I vs Godrej Industries Ltd — CESTAT, 21 Aug 2026. Both twin conditions of Chapter Note 3 to Chapter 34 — water solubility without separation of insoluble matter and reduction of surface tension to 4.5 x 10-2 N/m — must be cumulatively satisfied for classification as an…
  • Suruchi Creation Pvt Ltd vs Ahmedabad — CESTAT, 17 Aug 2026. Under the strict-construction rule for exemption notifications, default in EPCG export obligation entails recovery of duty saved with interest under Sections 28(1)/28AA, but absent mens rea and where failure is…
  • -Kolkata(Port) vs Jelenta Polytraders Private Limited — CESTAT, 10 Jun 2026. Once DGFT has issued EODCs and the customs bonds stand discharged, and a contemporaneous show-cause notice of another department records the EOU's receipt of the imported goods, co-noticees cannot be penalised under…
  • M/S Vaibhav International vs The Commissioner Of Customs — Karnataka High Court, 9 Mar 2026. No show cause notice can be issued under Section 28(4) of the Customs Act while assessment remains provisional under Section 18, since the 'relevant date' under Explanation 1(b) to Section 28 runs only from adjustment…
  • Samarth Diamonds vs Commissioner Of Customs-Air Special… — CESTAT, 22 Jan 2026. Where the Central Government, in exercise of powers under section 28A of the Customs Act, 1962, directs that duty on goods covered by a generally prevalent practice of non-levy shall not be required to be paid for the…
  • R.K.Jewels vs Principal Commissioner Of Customs (Acc… — CESTAT, 7 Jan 2026. Customs authorities cannot recover duty under section 28(1)/28AAA or deny benefits on the ground that an import licence or other instrument issued under the FTDR Act was wrongly obtained unless and until the DGFT itself…
  • Kannur International Airport Ltd vs Cochin-Cus — CESTAT, 23 Sep 2025. Interest under Section 28AA of the Customs Act, 1962 is attracted only where the amount payable is 'duty' under Section 28, and therefore cannot be levied on cost recovery charges, which are not duty.
  • M/S Lulu International Shopping Malls Pvt Ltd vs Central Board Of Indirect Taxes And… — CESTAT, 2 Jun 2025. Classification of goods is a matter relating to chargeability and the burden of proof lies squarely upon the Revenue, which must adduce proper evidence and apply the General Rules for Interpretation of the Tariff before…

All 30 judgments