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Claim for interest on wrongfully retained amount by Customs authorities. Analysis: The petitioners imported Alloy Steel Scrap and filed Bills of Entries with Customs for clearance, but Customs imposed excess duty and fine. The petitioners filed refund applications for the excess amount, and some refunds were granted. The petitioners then filed a writ petition for the remaining amount, which was allowed by a Single Judge directing refund with interest at 12%. An appeal by the respondents was dismissed, and the Supreme Court refused leave to appeal. The petitioners demanded interest on the refunded amount, but the Customs Department refused, leading to the current petition. The petitioners argued that the refund process took over a year, and interest should be granted at 12% for the entire refund amount. The Court agreed, noting the petitioners' need to secure advances from banks at rates exceeding 12%. The Court found no reason to deny interest when the amount was wrongfully retained. The Department's argument of refunding without requiring the petitioners to appear was rejected as the recovery was illegal. The Court emphasized that the delay in refunding without cause warranted interest payment. The Department contended that interest should not be granted in a petition under Article 226, but the Court disagreed, as interest had been awarded in the earlier petition. The Court found no merit in the Department's arguments and held that the petitioners were entitled to the relief sought. Thus, the Court made the rule absolute, directing the respondents to pay the petitioners the calculated amount within four weeks, with no order as to costs.
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