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Issues:
Interest on delayed refund - Date from which interest is payable disputed. Analysis: The issue in this case revolves around the payment of interest on delayed refunds. The appellants argued that interest should be paid from three months after the date of the refund application, while the department contended that interest is payable only after the Tribunal's order setting aside the lower authorities' rejection of the refund claim. Upon considering both sides, the Tribunal referred to the decision of the Larger Bench in the case of Rama Vision Ltd. v. CCE, Meerut and the judgment of the Hon'ble Gujarat High Court in Afrique Tradelinks Pvt. Ltd. v. Union of India. It was noted that the refund claim, even if arising from the Tribunal's order, falls under Section 27A of the Customs Act. The explanation to Section 27A clarifies that an order of refund by the Appellate Tribunal is deemed to be under Section 27. Section 27A mandates the payment of interest from three months after the refund application until the actual refund date. Therefore, the Tribunal concurred with the appellants, ruling that interest at prevailing rates should be paid to them from a specific date, which is three months after the introduction of Section 27A, as stipulated. Consequently, the appeal was allowed in favor of the appellants based on the interpretation of the relevant legal provisions and precedents cited. This judgment clarifies the timeline for the payment of interest on delayed refunds, emphasizing the statutory provisions under Section 27A of the Customs Act and the applicability of interest rates from the specified date. The decision provides a clear interpretation of the law in alignment with previous judicial pronouncements, ensuring consistency and adherence to legal principles in matters concerning delayed refunds and interest payments.
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