2007 (11) TMI 197 - AT - Customs

Refund Interest - On basis of earlier decision which is decided in favour of assessee, both the extra duty deposited and also the pre-deposit should have been refunded to the applicant within a reasonable period of time taking the minimum time required for processing - In view of the clear cut directions of the Board circulars, dept. is directed to implement the Tribunal s order without further delay by granting the refund due to the party along with interest in accordance with law

Summary

Issues:
- Refund of extra duty deposit and pre-deposited amount as per Final Order
- Delay in processing refund claim by the Department
- Direction to grant refund with interest in accordance with law

Refund of extra duty deposit and pre-deposited amount as per Final Order:
The appellants filed a miscellaneous application seeking refund of extra duty deposit and a pre-deposited amount as per the Final Order passed by the Bench. The appellants claimed refund of Rs.3,24,91,954/- for extra duty deposit and Rs.45,00,000/- pre-deposited as per the Stay Order. Despite the appellants' submissions and reminders, the Department directed them to file a fresh refund claim with finalized bills of entry and other documents. The Tribunal found that the appellants were entitled to the refund as per the Final Order dated 30-3-2005. The Tribunal emphasized that the refund should have been processed within a reasonable period, as per Circulars of the Board dated 2-1-2002 and 8-12-2004. The Tribunal directed the Department to implement the order without further delay and grant the refund due to the party along with interest within one month.

Delay in processing refund claim by the Department:
The appellants faced delays in processing their refund claim by the Department despite multiple submissions and reminders. The Additional Commissioner directed the appellants to file a fresh refund claim with necessary documents, even though the appellants claimed that the documents had not been returned to them by the Department. The Tribunal noted the lack of response from the Department to subsequent reminders sent by the appellants. The Tribunal highlighted the Circulars of the Board, which stated that delays beyond a specified period would be viewed adversely, and disciplinary action would be initiated against defaulting officers. The Tribunal directed the Department to grant the refund along with interest in accordance with the law, emphasizing the importance of timely processing of refund claims.

Direction to grant refund with interest in accordance with law:
After careful consideration, the Tribunal concluded that the appellants were entitled to the benefit of refund as per the Final Order. The Tribunal emphasized that the refund, including the extra duty deposit and pre-deposited amount, should be granted to the appellants within a reasonable period. Citing the Circulars of the Board, the Tribunal directed the Department to implement the Tribunal's order without delay and grant the refund due to the party along with interest. The Tribunal allowed the miscellaneous application and pronounced the decision in open court, ensuring that the relief would be granted to the party within a month from the date of receipt of the Order.