2015 (9) TMI 976 - HC - Customs

Denial of Duty drawback claim - Interest u/s 75A - Held that - where any drawback payable to the claimant is not paid within a period of one month from the date of filing a claim for payment of such drawback interest at the rate fixed under Section 27-A from the date after the expiry of the said period of one month is payable to the petitioner. Therefore, when it is made clear that the petitioner is entitled to claim interest, as per Section 75-A and further notification with regard to quantum of interest and also as per Notification Customs No.18/2011-Customs (N.T), 1st March 2011, 18% interest per annum having already fixed by the Central Government is hereby fixed. - respondent is hereby directed to pay the interest at the rate of 18% on the sanctioned and paid duty drawback claim amount entitled by the petitioner for the period from 18.02.2010 to 24.09.2010, within a period of four weeks - Decided in favour of assessee.

Summary

Issues:
Claim for interest on duty drawback amount sanctioned and paid to the petitioner.

Analysis:
The Writ Petition was filed seeking a Mandamus to direct the Assistant Commissioner of Customs to pay and settle interest at 18% on the sanctioned and paid Duty Drawback Claim amount for a specific period as per Section 75A of the Customs Act, 1962. The court had previously allowed a similar prayer by the petitioner based on relevant notifications and decisions. The court directed the settlement of the pending balance Duty Drawback Claim Amount within a specified period. The petitioner was later requested to inform the outcome of a classification pending before the CESTAT. The CESTAT, in its subsequent order, confirmed the classification of Flexible Intermediate Bulk Containers under a specific code, leading to the petitioner being entitled to interest on the Drawback as per Section 75-A of the Customs Act.

The court referred to Section 75-A of the Customs Act, which outlines the entitlement to interest on drawback amounts not paid within a specified period. The court noted that the petitioner was entitled to claim interest, and the rate of interest was fixed at 18% per annum as per a specific government notification. Consequently, the court directed the 3rd respondent to pay the interest at the rate of 18% on the sanctioned and paid duty drawback claim amount within a specified timeframe. The Writ Petition was allowed, and no costs were awarded.