Section 8: Default surcharge

[8. Default surcharge.—If a person does not pay the duty due or any part thereof within the prescribed time or receives a refund of duty or drawback or makes an adjustment which is not admissible to him, he shall, in addition to the duty due, pay default surcharge at the rate of 5[twelve percent per annum or KIBOR plus three percent per annum, whichever is higher], of the duty due, refund of duty or drawback. Explanation.—For the purpose of this section,– (a) the period of default shall be reckoned from the date following the due date on which the duty was payable to the preceding day on which the duty is actually paid; and (b) in case of inadmissible adjustment or refund of duty or drawback, the period of default shall be reckoned from the date of such adjustment or as the case may be, refund of duty or drawback is received.]

Effective date: 2005-07-01

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