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2019 (7) TMI 1063 - HC - CustomsInterest on delayed refund - Section 27-A of the Customs Act, 1962 - HELD THAT - The Court is of the view that when the interest prayer is covered by the statutory provision and when the refund is also processed and paid, we need not advert to the facts for avoiding the consumption of time and save it for dealing with other matters, but suffice it to say that the provisions of Section 27-A of the Customs Act, 1962 does provide for interest on delayed payment and even the rate is provided. On the refund which was otherwise admissible from 29.12.2009, appropriate interest deserves to be awarded so as the interest to start running from 1.3.2010 till the date of payment, and we propose to award 6% of interest amount to the petitioner. Such interest amount be paid on or before 30.9.2019. Petition disposed off.
Issues:
Refund of export duty collected by authorities, delay in processing refund, statutory provision for interest on delayed payment, awarding interest to petitioner. Analysis: The petitioner sought a writ directing the authorities to refund the amount of export duty collected, release bank guarantees, and provide other reliefs. The Court noted inaction and delay in processing the refund, criticizing the authorities' approach. Despite the matter being pending in the Supreme Court, the Court found the delay unjustifiable and ordered the matter to be put up for further hearing. Subsequently, the principal amount was refunded, but the petitioner requested interest under Section 27-A of the Customs Act, 1962. The Court acknowledged the statutory provision for interest on delayed payments and awarded 6% interest from a specified date until the refund payment date. The respondent did not dispute the statutory requirement for interest, leading to the Court's decision to award interest to the petitioner, with a deadline for payment set. The petition was disposed of with the direction to pay the awarded interest amount by a specific date, emphasizing the importance of timely and rightful refunds in accordance with the law.
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