2016 (9) TMI 1553 - HC - Customs

Interest on refund - Sections 27 and 27(A) of the Customs Act, 1962 - applications are now pending consideration before the second respondent - HELD THAT - Considering the fact that the request is still pending before the second respondent it would be appropriate for the second respondent to pass a speaking order on merits and in accordance with law. These writ petitions stand disposed of by directing the second respondent to consider the petitioner's application for payment of interest and pass orders on merits and in accordance with law.

Summary

Issues:
1. Payment of interest on refund claim sanctioned to the petitioner.

Analysis:
The petitioner sought interest at statutory rates on a refund claim that had been sanctioned. Initially, the petitioner's application for refund was rejected, leading to the filing of writ petitions. Subsequently, the petitioner was allowed to appeal before the Commissioner of Customs (Appeals), who partly allowed the appeal. The matter was further taken to the CESTAT, which allowed the appeal, directing the refund to be processed. Despite representations made by the petitioner, the refund was not processed with interest as requested. The High Court directed the second respondent to consider the petitioner's application for interest payment and pass orders within eight weeks.

Conclusion:
The High Court, after considering the pending application for interest payment on the sanctioned refund, directed the second respondent to pass a speaking order on the merits and in accordance with the law within eight weeks. The court emphasized the need for the timely consideration of the petitioner's request for interest payment.