9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (11) TMI 1291 - AT - CustomsNon-payment of interest on refund u/s 18(4) of the Customs Act 1962 on account of finalization of provisional assessment - on completion of the specified quantity of import under the contract, the provisional assessments were finalized and an amount was ordered to be refunded - No interest was paid to the appellant on such delayed payment which is payable as per Section 18(4) read with Section 27A of the Customs Act 1962 HELD THAT - From the Section 18(4) read with Section 27A of the Customs Act 1962, we observe that upon finalization of provisional assessment, if there is a refund liable to be paid, then it is to be paid within 3 months from the date of final assessment. If there is any delay in payment of the refund, then interest is liable to be paid for the delay in refund. We observe that this section does not talk about filing of the refund application. As per section 18(4), if the refund is not paid within 3 months from the date of final assessment, then interest is payable. Accordingly, we hold that the department is liable to pay interest for the delay in payment of refund, beyond 3 months from the date of final assessment. Thus, allow the appeal filed by the appellant.
Issues:
Interest payable on delayed refund under Section 18(4) of the Customs Act 1962. Analysis: The judgment by the Appellate Tribunal CESTAT Kolkata involved a dispute regarding the payment of interest on a delayed refund under Section 18(4) of the Customs Act 1962. The appellant, a manufacturer of Cement Fibre Sheet, imported raw materials and filed Bills of Entry for clearance. The assessments were provisional under section 18(1)(a) of the Customs Act. Upon completion of the specified quantity of import, the assessments were finalized, and a refund was ordered to be paid. However, the refund was delayed, and no interest was paid to the appellant. The appellant contended that interest was automatically payable under Section 18(4) read with Section 27A of the Customs Act. The department argued that the refund was sanctioned within the stipulated time period, and hence no interest was payable. The Tribunal analyzed Section 18(4) of the Customs Act, which mandates that if a refundable amount is not refunded within three months from the date of final assessment, interest is payable on the unrefunded amount. The section does not require the filing of a refund application for such refunds. Therefore, the Tribunal held that if the refund is not paid within three months from the final assessment, interest is payable for the delay in refund. In conclusion, the Tribunal set aside the impugned order and allowed the appeal filed by the appellant, directing the department to pay interest for the delay in refund beyond three months from the date of final assessment. The judgment was pronounced in the open court on 26.11.2024.
|
