2024 (1) TMI 306 - HC - Customs

Refund of Terminal Excise Duty along with applicable interest - HELD THAT - As was recorded by this Court in BROADWAYS OVERSEAS LIMITED VERSUS UNION OF INDIA AND ORS. 2023 (11) TMI 1208 - DELHI HIGH COURT , the provision in relation to the Terminal Excise Duty have been struck down. The payments made by the Petitioner for Terminal Excise Duty shall be refunded to the Petitioner in terms of the judgment in UNION OF INDIA ORS VERSUS AUROBINDO PHARMA LTD. M/S. MOTHERSON SUMI ELECTRIC WIRES, M/S DEEPAK ENTERPRISES 2023 (5) TMI 677 - DELHI HIGH COURT and SANDOZ PRIVATE LIMITED VERSUS UNION OF INDIA OTHERS 2022 (1) TMI 225 - SUPREME COURT - It is further directed that the interest @ 6% per annum be also granted. Petition disposed off.

Summary

Issues involved:
The judgment involves a petition seeking a refund of Terminal Excise Duty claims under the Foreign Trade Policy, 2009-14 for specific periods. The main issue is the refund of Terminal Excise Duty payments and applicable interest following the striking down of the provision related to Terminal Excise Duty.

Summary:

Refund of Terminal Excise Duty Claims:
The petition was filed seeking a refund of Terminal Excise Duty claims under the Foreign Trade Policy, 2009-14 for various periods. The Court referred to a previous order stating that the provision related to Terminal Excise Duty had been struck down based on a judgment in the case of "Union of India v Aurobindo Pharma Ltd" and a Supreme Court judgment in "Sandoz Private Limited v. Union of India & Others, 2022 OnLine SC 10." Consequently, the Court directed that the payments made by the Petitioner for Terminal Excise Duty should be refunded in line with the Union of India case.

Grant of Interest on Refund:
The Court further directed that interest at the rate of 6% per annum should be granted along with the refund of Terminal Excise Duty. This direction was made in accordance with paragraph 58 of the judgment, which specified the conditions for refunding the duty with interest. The judgment highlighted that the EOU may receive a refund of the amount paid in cash for Terminal Excise Duty with simple interest at the rate of 6% per annum for any delayed refund of duty.

Disposition of Petition:
In conclusion, the Court disposed of the petition and all pending applications in line with the aforementioned directions. The file was ordered to be consigned to record, marking the conclusion of the legal proceedings related to the refund of Terminal Excise Duty claims under the Foreign Trade Policy, 2009-14.