2008 (8) TMI 731 - AT - Customs

Summary

Issues involved: Challenge to decision allowing interest on refund of pre-deposit by Revenue based on date of final decision of the Supreme Court.

Summary:
The Appellate Tribunal CESTAT, Ahmedabad heard an appeal where the Revenue contested the decision of the Commissioner (Appeals) allowing interest on a refund of pre-deposit of Rs. 1.25 crores granted three months from the date of the Tribunal's decision. The Revenue argued that interest on refund should be admissible from the date of the final decision of the Supreme Court. The issue revolved around the valuation of marble blocks imported by the respondents, with the Tribunal remanding the case back to the adjudicating authority to finalize the provisional assessment. The Revenue's appeal to the Supreme Court was dismissed, leading to the claim for refund of the pre-deposit. The Tribunal's order was clear in finalizing the value of the marble blocks, and the assessment had attained finality. The Tribunal held that interest liability arises from the date of the Tribunal's order, not the date of the Supreme Court's judgment. Therefore, the Commissioner (Appeals) decision was upheld, and the Revenue's appeal was rejected.

The Central Board of Excise & Customs had directed in Circulars that interest should be paid on pre-deposits. The dispute centered on whether the decision of the CESTAT finalizing the issue had attained finality or if finalization could only occur when the Supreme Court rejected the appeal. The Tribunal's order clearly directed the assessment of the marble blocks at 95 US $ per MT, leaving only the quantification of duty for the original authority to decide. In the absence of a stay by the Supreme Court and in compliance with the Board's instructions, finalization of assessment and refund were warranted. Therefore, interest liability was deemed to arise from the date of the Tribunal's order. The Tribunal upheld the Commissioner (Appeals) decision, rejecting the Revenue's appeal.