2006 (6) TMI 377 - AT - Customs

Summary

Issues:
1. Entitlement to interest on refunded duty amount.
2. Claim for interest on the refunded amount of redemption fine.

Analysis:
1. The case involved the appellants who had imported auto parts and cleared them for home consumption in 1992 by paying Customs duty on an enhanced value. The valuation was challenged, and the Commissioner (Appeals) accepted the transaction value, granting consequential benefits to the assessee. The department appealed to the Tribunal, which dismissed the appeal, affirming the Order-in-Appeal. Subsequently, the assessee claimed a refund of the excess duty paid, which was allowed, and the refund was received in 2004. The party then applied for interest on the duty amount from the date of payment, which was rejected by the authorities, leading to the present appeal.

2. Upon examining the records and relevant provisions of law, it was found that the appellants were entitled to interest on the refunded duty amount under Section 27A of the Customs Act. The Order-in-Appeal dated 12-1-2001 was considered an order of refund of the excess duty, entitling the assessee to interest from three months after that date. Therefore, interest was to be paid from 13th April 2001 onwards. The impugned order was set aside, and the appeal was allowed to direct the original authority to pay interest to the appellants from 14th April 2001 to 16th April 2004.

3. The appellants also claimed interest on the refunded amount of redemption fine in the appeal. However, they did not provide any legal provision supporting this claim, and their Consultant did not press this claim during the proceedings. As a result, this claim for interest on the redemption fine amount was not allowed.

4. In conclusion, the appeal was allowed to grant interest on the refunded duty amount for the specified period, as determined under Section 27A of the Customs Act. The claim for interest on the redemption fine amount was not entertained as it lacked legal basis and support.