Section 15: Payment under protest

15. Payment under protest (1) Subject to this section, where, in respect of goods declared in a validated bill of entry, a dispute arises as to— (a) the amount or rate of duty, excise duty, taxes or charges; or (b) the liability of the goods to duty, excise duty, taxes or charges, and the owner of the goods wishes to clear them from Customs, he shall pay under protest, the sum demanded by the Director-General and the sum so paid shall, as against the owner of the goods, be taken to be the proper amount of duty, excise duty, taxes or charges on those goods. (1A) (a) Where duty, excise duty, taxes or charges have been paid in the manner specified in subsection (1), the Director-General shall— (i) on payment, clear the goods; and (ii) not later than 5 working days from the date of payment, issue to the owner of the goods, by registered post, a notice of assessment claiming the sum demanded under subsection (1) together with a penalty not exceeding 50 per cent of the difference between the sum demanded and the amount of duty, excise duty, taxes or charges specified in the validated bill of entry in respect of those goods. (b) The penalty claimed under paragraph (a)(ii) shall, subject to subsection (2) (a), be paid to the Director-General not later than 28 days from the date of the notice of assessment. (1B) (a) Where a dispute referred to in subsection (1) is in respect of goods already cleared by Customs, the Director-General shall, not later than 3 years from the date of the validated bill of entry, issue to the owner of the goods, by registered post, a notice of assessment claiming— (i) the amount of duty, excise duty, taxes or charges underpaid; (ii) a penalty not exceeding 50 per cent of the amount underpaid referred to in subparagraph (i); and (iii) interest on the amount underpaid at the rate of 0.5 per cent per month or part of a month from the date of the validated bill of entry to the date of payment. (b) The amount claimed under paragraph (a) shall, subject to subsection (2) (a), be paid to the Director-General not later than 28 days from the date of the notice of assessment. (2) (a) Where the owner of the goods is dissatisfied with a notice of assessment under subsection (1A) or (1B), he may, within 28 days of the date of the notice, object, in such form as the Director-General may approve, to the sum demanded or claimed, as the case may be, and send the form duly filled in to the Director-General by registered post. [Issue 9] C62 – 16 Revised Laws of Mauritius (b) Where the owner of the goods makes an objection under paragraph (a), he shall specify in the form the detailed grounds of the objection. (c) Where it is proved to the satisfaction of the Director-General that, due to illness or other reasonable cause, the owner of the goods has been prevented from making an objection within the time limit specified in paragraph (a), the Director- General may consider the objection. (ca) Where the Director-General refuses to consider an objection made after the time limit specified in paragraph (a), he shall, within 28 days of the date of receipt of the letter of objection, give notice of the refusal to the person. (d) Any objection under this subsection shall be dealt with independently by an objection directorate. (e) The burden of proving that any sum demanded under subsection (1A) or any amount claimed under subsection (1B) is incorrect shall lie on the owner of the goods. (2A) (a) The objection directorate shall consider an object n made after the time limit specified in paragraph (a), he shall, within 28 days of the date of receipt of the letter of objection, give notice of the refusal to the person. (d) Any objection under this subsection shall be dealt with independently by an objection directorate. (e) The burden of proving that any sum demanded under subsection (1A) or any amount claimed under subsection (1B) is incorrect shall lie on the owner of the goods. (2A) (a) The objection directorate shall consider an objection under subsection (2) and may— (i) review the sum demanded or amount claimed; (ii) disallow or allow it in whole or in part; and (iii) where appropriate, amend the sum demanded or amount claimed to conform with its determination. (b) The Director-General shall, within 4 months of the date of receipt of the objection under subsection (2), give notice of the determination to the owner of the goods. (c) Where the objection is not determined within 4 months under paragraph (b), it shall be considered to have been allowed by the Director-General. (2B) Where the owner of the goods is aggrieved by a determination under subsection (2A) (a) or a decision under subsection (2) (ca), he may, within 28 days of the date of the determination, lodge written representations with the Clerk to the Assessment Review Committee in accordance with section 19 of the Mauritius Revenue Authority Act. (3) Where duty or excise duty has been paid in the manner specified in subsection (1) or (1B) and as a result of the determination of an objection under subsection (2A) (a), any amount of duty or excise duty underpaid, or paid in excess, of the amount determined to be properly payable, shall, subject to subsection (2B), be claimed or refunded, as the case may be. (4) Where taxes have been paid in the manner specified in subsection (1) or (1B) and as a result of the determination of an objection under subsection (2A) (a), any amount of taxes underpaid or paid in excess of the amount determined to be properly payable, shall, subject to subsection (2B), be claimed, refunded or adjusted, as the case may be. (5) Any refund under this section shall carry interest, free of income tax, at the prevailing Repo rate determined by the Bank of Mauritius. [S. 15 amended by s. 3 (d) of Act 25 of 1994 w.e.f. 21 June 1994; s. 4 (a) of Act 23 of 2001 w.e.f. 11 August 2001; s. 27 (3) (e) of Act 33 of 2004 w.e.f. 1 July 2006; s. 9 (b) of Act 17 of 2007 w.e.f. 22 August 2007; s. 5 (c) of Act 26 of 2012 w.e.f. 1 January 2013; s. 4 (c) of Act 26 of 2013 w.e.f. 21 December 2013; s. 12 (f) of Act 9 of 2015 w.e.f. 14 May 2015.] C62 – 16 (1) [Issue 9] Customs Act Sub-Part II – Valuation and Invoices