2003 (1) TMI 544 - AT - Customs

Summary

Issues: Delay in refunding penalty amount; Failure to implement Tribunal's order; Request for interest on delayed refund.

In this case, the appellant approached the Tribunal with a miscellaneous application stating that a penalty amount refunded as a result of the Tribunal's order had not been refunded to them. Despite multiple letters and adjournments, the department failed to refund the amount and demurrage requested by the appellant. The Tribunal, noting the department's inaction, warned that interest would be imposed if the amount was not refunded by a specified date. When the department finally claimed to have dispatched a cheque, the Tribunal requested evidence of the dispatch. The Tribunal expressed dismay at the department's failure to implement the order without any appeal or stay obtained. The Tribunal found the department's disregard for the order unacceptable and requested an explanation from the Commissioner for the delay.

Regarding the delay in refunding the penalty amount, the Tribunal found the department's actions to be callous and wilful disregard of the Tribunal's order. The department sought further adjournment to investigate the delay and seek instructions from the Commissioner. The Tribunal expressed surprise at the delay, noting that despite the order passed years ago, the amount had not been refunded until the Tribunal intervened. The Tribunal highlighted the citizen's charter displayed at the Customs House, emphasizing the obligation to refund amounts due within a specified timeframe. Despite the clear directive, the department failed to refund the amount promptly, leading the Tribunal to order the department to pay interest on the delayed refund.

Citing a judgment from the Madras High Court awarding interest for delayed refunds without satisfactory reasons, the Tribunal decided to impose interest on the department at the prevailing rate for delayed refunds. The interest was to be calculated from the date of the Tribunal's order until the date the appellant received the amount. The Tribunal emphasized that if the amount was not sanctioned within a reasonable period, the appellant could seek enforcement of the order through the Tribunal or any other judicial body. The Tribunal's decision to order interest on the delayed refund was based on the department's failure to provide a satisfactory explanation for the delay and the importance of upholding the Tribunal's orders.