2002 (1) TMI 63 - HC - Customs

Summary

Issues involved:
The issue involves a petition for refund of an admitted amount, the entitlement of the petitioner, delay in payment, maintainability of the writ petition, and the grant of interest as a consequential relief.

Admitted Amount Refund:
The petitioner filed a petition claiming refund of the amount, which was not in dispute. The respondents undertook to refund the amount as per the order of the CEGAT dated 21-5-1997, and the amount has been paid to the petitioner accordingly.

Delay in Payment and Grant of Interest:
The petitioner argued that the respondents were obligated to refund the amount as per the Tribunal's order and that the delay in payment necessitated the petition. The petitioner sought interest as a consequential relief for the delayed payment, while the respondents contended that the writ petition was not maintainable for such relief.

Maintainability of Writ Petition and Grant of Interest:
The respondents argued against the maintainability of the writ petition for granting interest as relief. The petitioner asserted that seeking mandamus to implement the Tribunal's order was within their rights, and interest could be granted as a consequential relief in such cases.

Legal Observations and Grant of Interest:
The Court referred to precedents and legal principles regarding the discretionary nature of writ remedies, the enforcement of statutory obligations, and the entitlement to interest on delayed refunds. It was noted that the petitioner was entitled to claim interest for the delayed payment of the refund amount under Section 27A of the Customs Act.

Decision and Grant of Interest:
The Court found that the petitioner was deprived of liquidity without justification and granted simple interest at a rate of 6% per annum for the period of delay. The Court ordered that if the refund amount was paid within 60 days from the judgment, the interest rate would be 6% per annum; otherwise, it would be 10% per annum.

In conclusion, the petition was allowed, the rule was made absolute, and no costs were ordered.