Disputes relating to levy and collection of tax, interest and penalty absent a substantive provision have been a bone of contention between taxpayers and revenue since inception of taxing statutes. Despite various authoritative judicial precedents on the subject, the disputes do not seem to subside. In a recent judgment in the case of Mahindra & Mahindra Limited v. UOI and Ors., 2022 (10) TMI 212-Bombay High Court, the Court held that the provisions relating to imposition of interest and penalty on additional duties of Customs and Surcharge have not been borrowed in the Customs Tariff Act, 1975 (‘CTA’). Absent such substantive provision, Court set-aside the demand of interest and penalty on such levies under the CTA. 

In the present article, Our Partner, Mr. Dharnendra Kumar Rana and Managing Associate, Mr. Sourabh have deliberated on existence or otherwise of a substantive provision for imposition of interest and penalty on IGST levied on import of goods in terms of Section 3(7) of the CTA.

 Please click on the below link to read our latest article titled “Interest and Penalty on IGST levied on import of goods I A legal faux pas?”

NITYA I Interest and Penalty on IGST levied on import of goods I A legal faux pas I Indirect Tax I Article 105