2018 (5) TMI 617 - AT - Customs

Liability of interest on belated refund - relevant date - adhoc exemption for import of TMBP coils at concessional rate of duty. Held that - the said refund claim is correct and needs to be accepted as the Apex Court in the case of Ranbaxy Laboratories Limited 2011 (10) TMI 16 - Supreme Court of India has settled the law which holds that interest has to be paid to a refund seeker if the refund is not sanctioned within 3 months from the date of filing of the said claim - the lower authorities directed to grant interest on appropriate rate to SAIL in accordance with the law - appeal allowed - decided in favor of appellant.

Summary

Issues:
1. Appeal against non-granting of interest for belated refund.
2. Appeal by Revenue against non-liability to pay differential duty and refund of duty paid.

Issue 1:
The case involves two appeals concerning the non-granting of interest for belated refund and the liability of Steel Authority of India Limited (SAIL) to pay differential duty. The dispute arises from the import of Tin Mill Black Plate Coils (TMBP coils) under an Adhoc exemption Order. The initial allocation order by the Iron & Steel Controller allotted specific quantities to different producers for clearance at a concessional rate of duty. Subsequently, a revised allocation order was issued, leading to excess clearance by SAIL. The Customs Department demanded differential duty from SAIL, which was contested through various appellate stages.

Issue 2:
The second issue pertains to the appeal by Revenue against the non-liability of SAIL to pay differential duty and the refund of duty paid. The Revenue argued that SAIL misused the adhoc exemption by importing TMBP coils in excess of the allotted quantities. The Revenue contended that SAIL cleared additional quantities without proper authorization, leading to a demand for differential duty. However, the first appellate authority ruled in favor of SAIL, stating that the imports were within the revised allocation orders. The Tribunal upheld this decision, emphasizing that the total imports did not exceed the permissible quantity under the exemption orders.

The Tribunal analyzed the case records and found that SAIL had imported and cleared TMBP coils within the revised allocation order, thereby rejecting the Revenue's appeal. Additionally, the Tribunal addressed SAIL's appeal for interest on the belated refund, citing the law established by the Apex Court in the case of Ranbaxy Laboratories Limited, which mandates interest payment if a refund is not sanctioned within three months. Consequently, the Tribunal allowed SAIL's appeal for interest payment.

In conclusion, the Tribunal rejected the Revenue's appeal and allowed SAIL's appeal for interest payment, based on the detailed findings and legal principles established in the case law.