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TMI Blog2017 (3) TMI 1069X X X X Extracts X X X X X X X X Extracts X X X X ..... t is payable in such cases ?'' 2.Before we proceed further, we may only indicate that the controversy in the appeal falls in a narrow compass. The assessee seeks payment of interest on the moneys deposited pursuant to investigation carried out at its premises by the Directorate of Revenue Intelligence (in short 'DRI'), while the Revenue resists the claim for payment of interest, as it is the stand of the Revenue that the moneys so deposited was in the nature of security deposit. The assessee, on the other hand, contends that pursuant to the adjudication order passed on 30th June, 1997, by the Commissioner of Customs (Imports) (in short 'the Commissioner'), even if it is assumed that, to begin with, the deposit made was in the nature of security deposit, it certainly took the colour of a duty and therefore, interest under Section 27A of the Customs Act, 1962, (in short 'the Act') is payable to the assessee. 3.Quite frankly, the matter has taken several twists and turns and therefore, in order to appreciate the context in which the deposit was made, certain broad facts would have to be noticed. These are as follows: 3.1.The assessee claims to be gen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount of Rs. 4,57,892/- shall be adjusted against the amount of Rs. 14,23,600/- which was voluntarily paid by the importers during the course of investigation. 5.The duty liability in respect of past clearances as admitted by the party is allowed to be adjusted against the amount voluntarily paid during the time of search in November, '95 namely, Rs. 14,23,600/. 6.The goods under seizure are confiscated under sect.111(d) and (m) of the Customs Act, 1962. However the goods are allowed to be redeemed on payment of a fine of Rs. 3,00,000/- (three lakh only). 7.also impose a personal penalty of Rs. 1,00,000/- (one lakh) on the importers under Sec.112(a) of the Customs Act, 1962.'' (emphasis is ours) 3.6.Consequent to the aforementioned order of the Commissioner, on 29th August, 1997, a sum of Rs. 4,52,735/- was adjusted out of the deposit made by the assessee on 17.01.1996. 3.7.The assessee, being aggrieved, preferred an appeal with the Tribunal. The Tribunal vide order dated 05.09.2001 remitted the matter for fresh adjudication to the Commissioner, whereby, inter alia, the Commissioner was directed to confine himself to the BEs, which were the subject matter of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ow that the assessee is not entitled to interest as Section 27A of the Customs Act, 1962 only provides for payment of interest at the specified rate in the event of delay in refund of duty and not delay in refund of an amount representing security deposit. However, as regards the amount of Rs. 4,52,735/-, which admittedly represents duty, since there has been a delay in refund of this amount, the assessee is entitled to interest on the sum of Rs. 4,52,735/-. In the result, the appeal is partly allowed as above.'' 5.The assessee, being aggrieved with the impugned judgment of the Tribunal, has approached this Court for grant of interest on the sum of Rs. 9,70,865/-. 6.Arguments, in support of the appeal, have been advanced by Mr.Murugappan, while the Revenue is represented by Mrs.Hemalatha. 7.Mr.Murugappan has submitted that the sum of Rs. 14,23,600/-, which was deposited by the assessee on 17.01.1996 was made over in circumstances which were anything but voluntarily. It is his submission that the said deposit was made under threat and duress, as the DRI officials had landed up at the assessee's premises, when, wedding celebrations were on. It is the learned counsel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led them to adjust a sum of Rs. 4,52,735/- vide order dated 30.06.1997. By the very same order, in so far as the past clearances were concerned, the balance sum was adjusted towards ''duty liability''. 10.2.This aspect of the matter, according to us, clearly emerges upon reading of the operative portion of the order dated 30.06.1997 passed by the Commissioner. We have already extracted the operative portion of the said order. However, only to emphasize the point, we once again advert to sub-paras 4 and 5 of the operative directions contained in order dated 30.06.1997: ''52. Under the above circumstances, I order the following:- 1. ... 2. ... 3. ... 4.The duty amount of Rs. 4,57,892/- shall be adjusted against the amount of Rs. 14,23,600/- which was voluntarily paid by the importers during the course of investigation. 5.The duty liability in respect of past clearances as admitted by the party is allowed to be adjusted against the amount voluntarily paid during the time of search in November, '95 namely, Rs. 14,23,600/.'' (emphasis is ours) 10.3.A bare perusal of the aforesaid extract would show that while a sum of Rs. 4,57,892/- wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... early no jurisdiction to demand and collect any amounts from the assessee, in view of the fact that they are not vested with powers of an Assessing Officer. Furthermore, if we were to accept this argument of the learned counsel, then it would tantamount to allowing the Revenue to take advantage of its own wrong. 11.1.This apart, the Revenue has enjoyed the benefits of the money collected from the assessee on account of purported liability to pay duty, which was ultimately proved to have been wrongly foisted. Therefore, in our opinion, it only be right that the Revenue be called upon to pay interest to the assessee because, by its nature, any such collection of money by Revenue can only be termed as exaction under ostensible authority of law. 11.2.Fortunately, for the assessee, there is a provision in the Act for payment of statutory interest and therefore, we do not need to resort to any other principle of law for directing payment of interest. 12.For the foregoing reasons, we allow the appeal and accordingly, set aside the impugned judgment of the Tribunal to the extent it denies interest on a sum of Rs. 9,70,865/-. 13.Consequently, interest will be paid to the assessee in ter ..... X X X X Extracts X X X X X X X X Extracts X X X X
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