No Interest or Penalty on CVD or SAD or IGST etc. on Import of Goods – Bombay HC Order Analysis

In a very important decision in the case of Mahindra and Mahindra Limited v. Union of India, 2022 (10) TMI 2022, the Bombay High Court (‘HC’) has held that there is no provision under the Customs Tariff Act, 1975 (‘CTA 1975‘) to levy interest or penalty on Countervailing Duty (‘CVD‘) or Special Additional Duty (‘SAD‘).
The HC decided basis the various Supreme Court (‘SC’) and HC decisions that interest and penalty are substantive levy and cannot be levied by implication.