2012 (9) TMI 538 - HC - Customs

Denial of Refund of excess fine and penalty - non production of original challan for paying the penalty & photocopy was produced - Held that - The grievance of the department seems to be genuine, as later, if someone brings the original chalan and claims this money, the Department would be in difficulty as there is no time limit fixed in Ext.P3 for refund. Accordingly the assessee is directed to produce the documents pertaining to the identity of the person with correct proof of address and also bank account number along with indemnity bond with an undertaking to the Department so that genuine apprehension expressed by the Department could be satisfied to a large extent - there cannot be award of 6% interest on the amount to be refunded.

Summary

Issues:
Refund of excess fine and penalty, production of original chalan for refund, doubts regarding bonafides of the claimant, requirement of producing correct proof of address and bank account number for refund, modification of review order, setting aside of interest and exemplary cost, timeline for refund.

Analysis:
The judgment pertains to a writ petition seeking a refund of excess fine and penalty following an appellate order reducing the amount. The Department, dissatisfied with the review order for refund, raised concerns about the absence of the original chalan for the penalty payment. The Department highlighted doubts regarding the claimant's bonafides due to communication issues and the closure of the concerned unit. The court acknowledged the Department's genuine grievance, emphasizing the importance of verifying the claimant's identity and address to prevent future complications. The court directed the claimant to produce documents proving identity, correct address, bank account details, and an indemnity bond within a specified timeframe to address the Department's apprehensions adequately. The court decided against awarding interest on the refund amount and set aside exemplary costs, affirming the refund payment as directed in the initial judgment. The review order was modified, instructing the respondent to comply within four weeks of the judgment, with the Department required to finalize the refund within the subsequent four weeks.

In conclusion, the writ appeal was disposed of with the court's directives aimed at ensuring a proper verification process for the refund, safeguarding against potential fraudulent claims, and providing a clear timeline for the resolution of the matter.