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TMI Blog2012 (10) TMI 919X X X X Extracts X X X X X X X X Extracts X X X X ..... e delayed payment, Interest of justice would be amply met if payment is made of simple interest at 9 per cent, per annum from the date it became payable till the date it is actually paid - the respondents are directed to pay the interest on the amount of Rs.6,60,000/- refunded to the petitioner, based on his refund claim, for the period, from December, 2004, to 26th of August, 2008, at the rate of 9% interest per annum, within a period of eight weeks from the date of receipt of a copy of this order - writ petition is disposed of with no costs - Consequently, connected miscellaneous petition is closed. - Writ Petition Nos.18089 and 18090 of 2009 - - - Dated:- 6-9-2012 - MR. M. JAICHANDREN J. For Petitioner : Mr. Joseph Prabakar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s the petitioner had filed a refund application, on 28.9.2004,for the refund of Rs.9,60,000/-, collected by the customs department, through encashment of the bank guarantees, by the Director General of Foreign Trade. The refund claim of the petitioner had been rejected by the Department on the ground that the amount had been recovered from the petitioner for the breach of trust and that the claim had not been filed, within a period of six months from the date of the encashment of the bank guarantee. The request of the petitioner relating to the refund claim had been rejected, vide the Order-in-Original, No.3977 of 2005, dated 14.7.2005, passed by the Deputy Commissioner of Customs (Refunds), Office of the Commissioner of Customs (Sea Port), ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Commissioner of Customs (Sea Port), Chennai. 6. It has been further stated that, due to the delay in the refunding of the amount of Rs.6,60,000/-, the petitioner had requested the second respondent to pay the interest from the month of December, 2004, till the 26th of August, 2008. However, the second respondent by his letter, dated 19.2.2009, had rejected the claim of the petitioner stating that interest on delayed refund, which is payable, as per Section 27-A would apply only in case of refund of customs duty made under Section 27 of the Customs Act, 1962. However, there cannot be a claim for the payment of interest arising out of the encashment of a bank guarantee. 7. It has been further submitted that the second responden ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd claim of the bank guarantee already enforced, Section 27 A would also be inapplicable. As such, interest on delayed refund would be payable, as per Section 27A of the Customs Act, 1962, only if the refund of customs duty had been made under Section 27 of the said Act. 10. The learned counsel appearing on behalf of the respondent had relied on the decision of the Supreme Court, wherein, it had been held that the question of payment of interest, by the government, under the deferment scheme, does not arise as there was no provision in the said scheme for the grant of such interest. Even though the liability to pay tax, by the assessee, accrues each year the payment of tax is deferred under the scheme. As such it is a sort of a loan giv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order of the Commissioner of Customs Appeals, dated 8.2.2006, stating that the petitioner was entitled to the refund. Only thereafter, on 26.8.2008, a sum of Rs.6,60,000/- had been refunded to the petitioner, pertaining to the Air Customs. The balance amount of Rs.3,00,000/- had been refunded to the petitioner, by the Assistant Commissioner of Customs (Refunds), Office of the Commissioner of Customs (Sea Port), Chennai. As such, the petitioner is entitled to the interest for the belated payment of the refund amount, due to it, for the period from December, 2004, till the 11th of November, 2007, at the rate of 9% per annum. 12. Even though the claim of the petitioner for the payment of interest on the belated payment of the refund amount ..... X X X X Extracts X X X X X X X X Extracts X X X X
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