CHAPTER IV
INDIRECT TAXES
Customs
Amendment of section 28.
80. In the Customs Act, 1962 (hereinafter referred to as the Customs Act) (52 of 1962), in section 28,-
(a) in sub-section (2), the following proviso shall be inserted, namely:-
“Provided that where notice under clause (a) of sub-section (1) has been served and the proper officer is of the opinion that the amount of duty along with interest payable thereon under section 28AA or the amount of interest, as the case may be, as specified in the notice, has been paid in full within thirty days from the date of receipt of the notice, no penalty shall be levied and the proceedings against such person or other persons to whom the said notice is served under clause (a) of sub-section (1) shall be deemed to be concluded.”;
(b) in sub-section (5), for the words “twenty-five per cent.”, the words “fifteen per cent.” shall be substituted;
(c) after Explanation 2, the following Explanation shall be inserted, namely:-
“Explanation 3.- For the removal of doubts, it is hereby declared that the proceedings in respect of any case of non-levy, short-levy, non-payment, short-payment or erroneous refund where show cause notice has been issued under sub-section (1) or sub-section (4), as the case may be, but an order determining duty under sub-section (8) has not been passed before the date on which the Finance Bill, 2015 receives the assent of the President, shall, without prejudice to the provisions of sections 135, 135A and 140, as may be applicable, be deemed to be concluded, if the payment of duty, interest and penalty under the proviso to sub-section (2) or under subsection (5), as the case may be, is made in full within thirty days from the date on which such assent is received.”.
Notes on Clauses:
Customs
Clause 80 of the Bill seeks to amend section 28 of the Customs Act, so as to-
(i) insert a proviso in sub-section (2) thereof to provide that where notice under clause (a) has been served and the proper officer is of the opinion that the amount of duty with interest leviable under section 28AA or the amount of interest, as the case may be, as specified in the notice, has been paid in full within thirty days from the date of receipt of the notice, no penalty shall be levied and the proceedings in respect of such person or other persons to whom the said notice is served under clause (a) of sub-section (1) shall be deemed to be concluded;
(ii) impose a penalty of “fifteen per cent.” in place of “twenty five per cent.” of the duty referred to in sub-section (5) thereof;
(iii) insert an Explanation after Explanation 2 thereof to declare that the proceedings in respect of any case of nonlevy, short-levy, non-payment, short-payment or erroneous refund where show cause notice has been issued under subsection (1) or sub-section (4), as the case may be, but an order determining duty under sub-section (8) has not been passed before the date on which the Finance Bill, 2015 receives the assent of the President, shall, without prejudice to the provisions of sections 135, 135A and 140, as may be applicable, be deemed to be concluded, if the payment of duty, interest and penalty under the proviso to sub-section (2) or under sub-section (5), as the case may be, is made in full within thirty days from the date on which such assent is received.
