2006 (3) TMI 160 - HC - Customs

Summary

Issues:
1. Mandamus for implementation of Customs Commissioner's order
2. Classification of inkjet cartridges for customs duty
3. Refund of excess customs duty and interest payment

Analysis:
1. The petitioner sought a mandamus directing the Customs authorities to implement the Commissioner of Customs (Appeals) order dated 6-8-2001. The Commissioner's order classified inkjet cartridges under sub-heading 8473.30 for a 5% duty rate. The Customs Department initially insisted on a 25% duty rate, leading to the petitioner paying under protest. Despite the Commissioner's order, the authorities did not finalize the assessment or refund the excess duty, prompting the writ petition for implementation.

2. The petitioner imported inkjet cartridges and classified them under Heading 8473.30, while the Customs Department initially classified them under sub-heading 8443.90 for a 25% duty rate. The Commissioner of Customs (Appeals) reversed this classification, determining the correct classification as sub-heading 8473.30 with a 5% duty rate. The Department's delay in acting on the correct classification led to the petitioner's refund claim and subsequent legal action.

3. The judgment highlighted the entitlement to interest under Section 27A of the Customs Act if duty refunds are delayed. The petitioner filed a refund claim on 17-10-2000, seeking a refund of excess duty paid on inkjet cartridges. Despite the delay in processing the refund, the authorities eventually refunded the principal amount on 2-5-2002. The Court directed the Customs authority to calculate and pay the interest due to the petitioner from 21-2-2002 to 2-5-2002 within two months of the judgment.

In conclusion, the judgment addressed the issues of mandamus for order implementation, correct classification of inkjet cartridges for customs duty, and the refund of excess duty with interest payment as per the Customs Act provisions. The Court's decision ensured the petitioner's entitlement to interest on delayed refunds and directed the Customs authority to expedite the payment within a specified timeframe.