2007 (1) TMI 391 - AT - Customs

Summary

Issues:
1. Refund claim of Anti Dumping Duty.
2. Payment of interest for delay in refund.

Refund Claim of Anti Dumping Duty:
The appeal was filed against an order passed by the Commissioner of Customs & Central Excise regarding the payment of differential Anti Dumping Duty on imported goods. The appellants imported goods from the USA and Germany, paying provisional duty initially. Later, final Anti Dumping Duty was imposed at a higher rate. The Deputy Commissioner directed the appellant to pay the differential duty, which was done. However, realizing that the duty need not be collected from the importer in such cases, a refund claim was filed. The Assistant Commissioner initially rejected the claim, but the Commissioner (Appeals) allowed it. The refund was eventually made after a significant delay, and the appellant sought interest for the delay, which was denied by the Assistant Commissioner and upheld by the Commissioner (Appeals).

Payment of Interest for Delay in Refund:
The main issue revolved around the applicability of Section 27A of the Customs Act, 1962, concerning the payment of interest for delayed refund of Anti Dumping Duty. The Revenue argued that since the amendment extending the provisions of interest on Anti Dumping Duty was made after the refund claim period, the appellant was not entitled to interest. However, the appellant contended that Section 27A is linked to Section 27, and if the duty ordered to be refunded is not paid within three months, interest is applicable. The Tribunal held that Section 27A is consequential to Section 27, and the timing of the amendment to Section 9A of the Customs Tariff Act is irrelevant. Therefore, the impugned order denying interest was set aside, and the appeal was allowed.

This judgment clarifies the interplay between sections of the Customs Act and the entitlement to interest on delayed refund of Anti Dumping Duty. The Tribunal emphasized the automatic application of Section 27A when a refund is granted under Section 27, irrespective of the timing of related amendments.