2004 (5) TMI 81 - HC - Customs

Summary

Issues:
Implementation of earlier order of the Customs, Excise and Gold (Control) Appellate Tribunal for refund of redemption fine and penalty, payment of interest at 12% per annum, Jurisdiction of the CEGAT to grant interest on delayed refund of redemption duty.

Analysis:
The petitioner imported goods which were confiscated with an option to redeem upon payment of a fine and bank guarantee. After appeals, the CEGAT directed refund of the redemption amount and release of the bank guarantee. The Collector of Customs delayed the refund and did not pay interest as directed by the CEGAT. The petitioner approached the CEGAT again, which directed the Collector to decide on the interest refund without delay. The Collector expressed inability to calculate interest, leading to the petitioner challenging the order.

The petitioner contended that the Commissioner misread the CEGAT's order and had a harassing approach. The jurisdiction of the CEGAT to grant interest was questioned by the Union of India, arguing that it was not within the statutory provisions. Section 129B of the Customs Act was analyzed to determine the Tribunal's powers, which were found to include rectifying mistakes and passing appropriate orders.

The Court upheld the CEGAT's order to grant interest as the Customs Authority's actions were deemed unauthorized and illegal. The Commissioner's misinterpretation of the CEGAT's orders was criticized, and the Court directed payment of interest at the rate fixed by the CEGAT from the expiry of one month as mentioned in the earlier order.

The Court refrained from awarding costs based on arguments presented. A stay of operation of the judgment was granted until four weeks after summer vacation upon the request of the Union of India's counsel. The application was allowed, and the Commissioner of Customs was directed to pay interest as per the CEGAT's order.

This detailed analysis covers the issues of implementing the CEGAT's order, jurisdiction to grant interest, and the interpretation of statutory provisions, providing a comprehensive overview of the judgment.