2023 (12) TMI 1340 - HC - Customs

Refund along with interest at the rate of 12% p.a. on pre-deposit - HELD THAT - Section 129EE of the Customs Act 1962 envisages that any amount that may have been deposited by way of a pre-deposit by an assessee is to be refunded along with interest not below 5% p.a. and not exceeding 36% p.a., and at such rate as may be notified by the Union Government. In terms of the aforesaid provision, the Union Government by way of a notification dated 12 August 2014 has prescribed interest on refund to be fixed at the rate of 6% p.a. In that view of the matter, the order impugned cannot be sustained. Interest shall consequently be computed and paid @ 6% p.a. - the impugned order is set aside - appeal allowed.

Summary

The High Court allowed the appeal, setting aside the order that granted refund with interest at 12% p.a. The court held that interest on refund should be paid at the rate of 6% p.a. as per the Customs Act 1962.