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2010 (2) TMI 610 - HC - CustomsDelayed refund - refund as delayed refund and is legally justified to allow the interest - interest becomes payable from 3 months from the date of the order of the Commissioner (Appeals) which results in the refund held that - no substantial question of law can be said to have arisen out of the order of the Tribunal - dismiss this appeal.
Issues:
1. Determination of the relevant date for sanctioning a refund under Section 27(2) of the Customs Act, 1962. 2. Justification for considering a refund as delayed and allowing interest under Section 27A of the Customs Act, 1962. Analysis: 1. The appeal before the Gujarat High Court involved a dispute regarding the entitlement of interest to the respondent assessee from a specific date. The Tribunal had considered various aspects and concluded that the date of filing the refund claim was not crucial. Instead, the focus was on the provisions of Section 27(2) of the Customs Act, 1962. The Court noted that as per Section 27-A and the Explanation attached, an order by the Commissioner (Appeals) should be treated as an order under Section 27(2) of the Customs Act. 2. The Court further elaborated that interest becomes payable under Section 27(2) and Section 27-A of the Customs Act, 1962, three months from the date of the Commissioner (Appeals)'s order resulting in a refund. The Commissioner (Appeals)'s order had directed the finalization of provisional assessment and the refund of deposits made during provisional assessment. The Court emphasized that the interest was rightfully payable as per the provisions of the Customs Act, especially when the demand against which the refund was adjusted had been overturned by the Tribunal. 3. The High Court, after analyzing the legal position and the facts of the case, concluded that there was no justification to interfere with the Tribunal's order. It was emphasized that no substantial question of law arose from the Tribunal's decision. Consequently, the Court summarily dismissed the appeal, affirming the Tribunal's ruling on the matter. The judgment provided clarity on the interpretation and application of relevant provisions of the Customs Act in determining the entitlement to interest on refunds, settling the dispute in favor of the respondent assessee.
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