2016 (6) TMI 951 - AT - Customs

Claim of interest on delayed refund of additional duty of customs - Held that - the notification flowing from the law gets its colour as legislation - the learned AR having no materials in his hand to examine whether there was a delay or not, the matter is remanded to the adjudicating authority to examine the delay chart filed by the appellant and going through the judgment of Hon ble High Court Delhi as well as Hon ble High Court of Madras shall pass appropriate order. It is needless to mention that the appellant is entitled to reasonable opportunity of being heard. - Matter remanded back.

Summary

Issues: Delay in refund of additional duty of customs and entitlement to interest on delayed refund as per law.

Analysis:
1. The appellant argued that any delay in refund of additional duty of customs should be compensated with interest, citing the decision of the Hon'ble High Court of Delhi in a specific case.
2. The appellant presented a chart detailing the delay in processing the refund claims and the corresponding interest amount admissible for each delayed refund.
3. The appellant sought interest on delayed refunds based on the judgments of both the Hon'ble High Court of Delhi and the Hon'ble High Court of Madras in relevant cases.
4. The revenue contended that without an express provision in the notification, no interest should be granted on the delayed refund to the appellant.
5. After hearing both sides and examining the records, the Tribunal considered the principle that notifications issued by the Government become part of legislation and are subject to the provisions of the law.
6. The Tribunal referred to the judgment of the Hon'ble High Court of Delhi to emphasize that the provisions of the Act regarding refund of duty and interest on delayed refunds apply to cases of delayed refund of additional duty of customs as well.
7. Despite the settled law on the issue by the High Courts, the Tribunal remanded the matter to the adjudicating authority to examine the delay chart submitted by the appellant and make a decision in accordance with the judgments of the High Courts.
8. The Tribunal concluded by disposing of all five appeals in line with the above considerations and ensuring the appellant's right to a reasonable opportunity to be heard in the matter.