2014 (1) TMI 1219 - AT - Customs

Rectification of Mistake - Grant of interest - Refund claim sanctioned within 3 months - Held that - Tribunal has clearly observed that the Tribunal has passed the order in favour of the appellant on 4-7-2002. Therefore, in terms of Board s Circular the appellants are entitled for the interest on delayed refund after three months from the date of issue of the order. Therefore, there is no question for the appellant to file any refund claim application in pursuant to the order passed by this Tribunal as no stay has been obtained by the Revenue against the said order from any higher Courts - applicants are entitled for refund within three months from 4-7-2002. Therefore, if there is any delay in payment of refund, interest is payable. From the above said Circular there is no requirement for filing an application for the refund claim - As it is only a ROM application wherein the findings of this Tribunal cannot be challenged by way of this ROM application. Therefore, the contention raised by the learned A.R. is totally mis-conceived, hence rejected - as per Board Circular dated 8-12-2004, the appellant are entitled for interest on pre-deposit after three months from the date of order passed by this Tribunal - Rectification denied.

Summary

Issues:
Application for Rectification of Mistake regarding refund claim and interest payment.

Analysis:
The Revenue filed an application for Rectification of Mistake (ROM) stating that the Tribunal did not consider the fact that the refund claim filed by the respondent was sanctioned within three months and no claim for interest was made by the assessee. The Revenue argued citing legal precedents that interest is payable for delayed refund of pre-deposit beyond three months. The Revenue contended that the Tribunal did not refer to relevant sections of the Customs Act and made a mistake in its order. The Tribunal examined the Revenue's contentions along with previous orders and circulars. The Tribunal noted that the appellant was entitled to interest on delayed refund after three months from the date of the order. The Tribunal emphasized that no separate application for refund was required as per the Board's Circular, and interest was payable in case of delay in payment. The Tribunal dismissed the ROM application as it was not the appropriate platform to challenge the findings of the Tribunal.

In conclusion, the Tribunal held that the appellant was entitled to interest on pre-deposit after three months from the date of the Tribunal's order. The Tribunal emphasized that no separate application for refund was necessary, and interest was payable in case of delayed payment. The Tribunal rejected the Revenue's contentions in the ROM application as it was not the correct avenue to challenge the Tribunal's findings. The Tribunal dismissed the ROM application based on the Board's Circular and the entitlement of the appellant to interest on delayed refund.