2021 (7) TMI 1152 - HC - Customs

Seeking interest on delayed disbursal of refund - circular bearing No.276/186/2015-CX.8A dated 01.06.2015 - HELD THAT - Admittedly, there is no interim order in the appeal filed by the respondents and therefore, the petitioner is entitled for the interest as ordered by this Court - But, in spite of the orders passed by this Court and in spite of the circular bearing No.276/186/2015-CX.8A dated 01.06.2015, the first respondent had refused to pay interest to the petitioner and had driven the petitioner to come before this Court once again for his entitlement. The earlier order is very clear as to the interest. The respondents are directed to pay the interest due to the petitioner within a period of four weeks from the date of receipt of a copy of this order - Petition allowed - decided in favor of petitioner.

Summary

Issues:
1. Delayed disbursal of refund with interest.
2. Calculation of interest on delayed refund.
3. Compliance with court orders and circulars.

Analysis:
1. The petitioner filed a writ petition seeking a Writ of Certiorarified Mandamus to quash the rejection of their claim for interest on delayed refund amounting to ?35,93,64,311. The petitioner had overpaid customs duty, leading to a refund entitlement confirmed by the Commissioner (Appeals). Despite a court order directing the refund with interest, the first respondent failed to disburse the interest amount. The petitioner sought intervention to enforce their entitlement to interest on the delayed refund.
2. The court reviewed the facts and noted that the petitioner's entitlement to interest was established in a previous order. The court emphasized that if no interim order was obtained by the department within a specified period, the refund must be allowed, subject to the appeal outcome. The court criticized the delay in filing an appeal by the department, stressing that the petitioner should not be made to wait indefinitely for their rightful refund. The court directed the respondents to implement the Order-in-Appeal and disburse the refund with applicable interest within four weeks, as per the circular issued by the Government of India.
3. The court highlighted that despite clear orders and relevant circulars, the first respondent had refused to pay interest to the petitioner, necessitating the petitioner to approach the court again. The court set aside the impugned letters rejecting the interest claim and directed the respondents to pay the interest due to the petitioner within four weeks of the order receipt. The court's decision emphasized adherence to court directives and circular provisions, ensuring timely compliance with refund disbursement and interest payment obligations.