2020 (10) TMI 776 - HC - Customs

Refund/rebate claim withheld - no stay order obtained - Circular bearing No.276/186/2015-CX.8A dated 01.06.2015 - HELD THAT - If no interim order has been obtained by the department within a specified period, refund has to be allowed and of course the same will be subject to the outcome of the appeal. In the case on hand, the appellate authority passed the order dated 18.02.2020. We are now on 01.10.2020. More than seven full months have elapsed in the meanwhile. If the department was aggrieved, the department should have expeditiously filed an appeal and pursued the matter and obtained interim order. The petitioner cannot be made to wait indefinitely. The department cannot take its own sweet time to file the appeal and pursue the same. The department ought to have acted expeditiously in the matter. The respondents herein are directed to disburse the refund due to the petitioner at the applicable rates of interest. This refund shall be made within a period of four weeks from the date of receipt of a copy of this order - petition allowed.

Summary

Issues:
1. Challenge of adverse order by petitioner before appellate authority.
2. Delay in implementation of appellate authority's order for refund.
3. Lack of interim order obtained by department in appeal process.
4. Interpretation and application of Circular No. 276/186/2015-CX.8A regarding refund claims.

Analysis:
1. The petitioner challenged an adverse order by the Assistant Commissioner of Customs before the Commissioner of GST and Central Excise(Appeals) Coimbatore @ Tiruchirappalli, which was subsequently allowed on 18.02.2020. The appellate authority set aside the original order and directed a refund of ?32,18,00,042/- and ?3,75,64,269/- as cash refund to the petitioner.

2. The petitioner sought implementation of the appellate authority's order for the refund without any delay along with appropriate interest. However, due to non-compliance by the department, a writ petition was filed for the enforcement of the refund order. The court noted the delay of over seven months since the appellate order and emphasized the need for expeditious action by the department in case of aggrievance.

3. The court highlighted the Circular No. 276/186/2015-CX.8A issued by the Government of India, emphasizing that if no interim order is obtained by the department within a specified period, the refund must be allowed, subject to the appeal's outcome. The court noted that the department should have promptly filed an appeal and obtained an interim order if aggrieved, rather than causing undue delay to the petitioner.

4. Considering the petitioner's rightful claim for refund as per the circular, the court directed the respondents to implement the Order-in-Appeal dated 18.02.2020 and disburse the refund along with applicable interest rates within four weeks from the date of the court's order. The writ petition was allowed without costs, emphasizing the importance of timely compliance with refund orders as per legal directives.