Keeyan Limited imported machine spares from Italy. Both provisional and final assessment took place for such import, details of which are as…
CA Final · Indirect Tax Laws · PYQS · May 2026
Keeyan Limited imported machine spares from Italy. Both provisional and final assessment took place for such import, details of which are as follows: Date of provisional assessment: 31.07.2025 Date of final re-assessment: 30.09.2025 Duty demanded based on final re-assessment:4,00,000 Date of payment of duty demanded: 10.10.2025 You are required to briefly state the relevant provision of the Customs Act, 1962 and calculate the interest payable (nearest to one rupee), if any, by Keeyan Limited on the final re-assessment.
Suggested Answer and Working Notes:
An importer is liable to pay interest at the rate of 15% p.a. on any amount payable consequent to the re-assessment order from the first day of the month in which the duty is provisionally assessed till the date of payment. Therefore, in the given case, Keeyan Ltd. is liable to pay following interest: = 4,00,000 × 15% × 102/365 = 16,767 (rounded off)
Topics: Customs: Importation and Exportation of Goods
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