2005 (6) TMI 428 - AT - Customs

Summary

Issues:
1. Refund claim with respect to customs duty.
2. Granting of statutory interest on delayed refund.
3. Appeal against the Adjudication Order.
4. Validity of setting aside the sanctioned refund.

Analysis:
1. The case involved an appeal against an Order-in-Appeal passed by the Commissioner (Appeals) regarding a refund claim for customs duty on the import of Release Agent. The assessment was initially provisional and later finalized, leading to the filing of a refund claim by the Appellants.

2. The Appellants contended that the Adjudicating Authority did not grant statutory interest on the delayed refund, which was the basis of their appeal. The Commissioner (Appeals) set aside the refund sanctioned by the Adjudicating Authority and directed the Appellants to deposit the amount already paid to them.

3. It was argued that since the Revenue did not file any appeal against the Adjudication Order sanctioning the refund, the Commissioner erred in setting it aside. The Appellants asserted that the Revenue had the option to either appeal the decision or issue a notice under Section 28 of the Customs Act for recovery of the erroneous refund, which was not done in this case.

4. The Tribunal found that the Adjudicating Authority had allowed the refund claim, and in the absence of any appeal by the Revenue, the Commissioner's decision to set aside the refund was not sustainable. The matter was remanded to the Commissioner (Appeals) to decide on the issue of interest on the refunded amount after providing the Appellants with a reasonable opportunity to be heard. The appeal was allowed by way of remand, indicating that the Appellants were entitled to the refund, and the decision on interest needed further consideration.