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2000 (5) TMI 452 - AT - Central Excise
Issues involved:
Claim for payment of interest on delayed payment under Section 27A of the Customs Act. Analysis: The appeal was filed against the order-in-appeal affirming the original order rejecting the claim for interest on delayed payment under Section 27A of the Customs Act. The appellants imported consignment in 1987 and sought clearance under a specific notification, but Customs authorities denied the benefit, charging duty at a higher rate. The appellants paid under protest and later applied for a refund, which was initially credited to the consumers' welfare fund. After several challenges and appeals, the Tribunal directed the refund to the appellants but did not award interest on the refunded amount. The Commissioner of Customs (Appeals) rejected the claim for interest, leading to the current appeal. The Commissioner (Appeals) found that the appellants submitted their claim for refund in complete form only after the Tribunal's initial order. The refund order was issued within the stipulated three months from when the evidence was produced in complete form, as required by Section 27 of the Customs Act. Therefore, the Commissioner rightly disallowed the claim for interest on delayed payment. Furthermore, during the relevant period in 1987, there was no provision in the Customs Act for payment of interest on delayed refunds. Section 27, concerning refund of duty and interest, did not allow for interest on the refunded amount. The introduction of Section 27A, which addresses payment of interest on delayed refunds, through the Finance Act, 1995, was prospective and not retrospective. As such, the appellants could not claim interest under Section 27A for the delayed refund. The impugned order disallowing interest on the delayed refund was legally sound and valid. In conclusion, the Tribunal upheld the decision of the Commissioner of Customs (Appeals) to dismiss the appeal, as there was no legal basis for the appellants' claim for interest on the delayed refund.
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