2021 (3) TMI 582 - AT - Customs

Interest of delayed refund of SAD - N/N. 102/2007-Cus dated 14.9.2007 - HELD THAT - This Tribunal in the appellant s own case M/S. HLG TRADING VERSUS COMMISSIONER OF CUSTOMS, LUDHIANA 2017 (8) TMI 11 - CESTAT CHANDIGARH wherein this Tribunal observed that the appellants are entitled to claim interest of delayed refund, after three months from the date of filing of the refund claims. The appellant is entitled to claim interest of delayed refund after 3 months from the date of filing of refund claims - Appeal allowed by way of remand.

Summary

Issues:
Entitlement to claim interest on delayed refund under Notification No.102/2007-Cus dated 14.9.2007.

Analysis:
The appellant appealed against impugned orders where refund claims under Notification No.102/2007-Cus dated 14.9.2007 were granted but interest was not paid on delayed refunds released after 3 months. The main issue was whether the appellant could claim interest on delayed refund under the said notification. The Tribunal referred to a previous Final Order in the appellant's case where it was established that interest on delayed refunds was permissible after 3 months from the filing date. The Tribunal cited a Circular stating no provision for interest payment under the notification but directed timely disposal of refund claims. A High Court order highlighted that interest on delayed refunds was warranted under Section 27 of the Customs Act, 1962, and Circular provisions contradicting statutory rights were deemed inappropriate. Consequently, the Tribunal allowed the appeal, affirming the appellant's entitlement to interest on delayed refunds after 3 months from filing, in line with previous decisions.

In conclusion, the Tribunal upheld the appellant's right to claim interest on delayed refunds under Notification No.102/2007-Cus dated 14.9.2007 after 3 months from the refund claims' filing date. The decision was based on previous rulings and statutory provisions ensuring the appellant's entitlement to interest as per the Customs Act, 1962. The Tribunal's judgment aligned with legal principles, emphasizing the importance of honoring statutory rights and entitlements in refund cases.