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TMI Blog2016 (12) TMI 1717X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of India. A license dated 9.3.1997 was issued by the Director General of Foreign Trade (DGFT), the Licensing Authority under the Scheme, as per which the assessee had to undertake a specified export obligation being USD 7,39,969 as a pre-condition to avail of the benefit under the scheme. A Bank Guarantee bearing Number 97/44 of the duty benefit of an amount of Rs. 7,57,105/- was furnished to the customs authorities for the period from 01.121997 to 01.12.2002. (ii) In the intervening period, the Department issued a letter dated 26.12.2000 to the Bankers stating that the petitioner had failed to fulfil pro-rata export obligation as per the relevant Customs Notification. An amount of Rs. 4,07,245/-(Rupees Four lakhs Seven thousand two hu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the issue as to whether a Bank Guarantee may be held as security in lieu of duty, even after enforcing and appropriating the same partly towards duty, was settled in favour of the Assessee by this Court in The Commissioner of Customs Vs. M/s. Jraj Exports (P) Ltd., (C.M.A.No.1541 of 2007 dated 21-07-2007). (v) The appeal filed by the assessee challenging order dated 20.08.2007 came to be dismissed vide order dated 04.11.2009. The assessee was set ex-parte yet again in the matter notwithstanding the position that the change in its address was brought to the notice of the first respondent as early as on 12.12.2007, under acknowledgement. This request appears to have been ignored by the appellate authority insofar as the order dated 4.11.2009 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oner of Customs(Exports), Chennai Vs. M/s. Jraj Export P Ltd [Order dated 21.7.2007 in C.M.A.No.1541 of 2007] has held that the Bank Guarantee furnished can not be considered as duty paid and it is only security to safeguard the interest of revenue. This order of the Hon'ble High Court has been accepted by the department. As such this refund claim merits sanction.' 4. The rationale of this Court in the decision of M/s.Jraj Export P Ltd(cited supra) has been consistently followed in subsequent matters as well including The Commissioner of Customs Vs. M/s. Aristo Spinners Ltd.,(C.M.A.No.213 of 2008, dated 25th January 2008). 5. Insofar as the order of the Commissioner (Appeals) was received only on 21-05-2014, a writ petition was immedi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isquoted and misinterpreted by the assessees and also by the Revenue. They are of the view that in Sandvik case (supra) this Court had directed the Revenue to pay interest on the statutory interest in case of delay in the payment. In other words, the interpretation placed is that the Revenue is obliged to pay an interest on interest in the event of its failure to refund the interest payable within the statutory period. 6. As we have already noticed, in Sandvik case (supra) this Court was considering the issue whether an assessee who is made to wait for refund of interest for decades be compensated for the great prejudice caused to it due to the delay in its payment after the lapse of statutory period. In the facts of that case, this Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he delay of nearly four years from the date of request by the appellant to the actual discharge of Bank Guarantee by the Department is unexplained. ) 10.4.2007 Application for refund filed by the petitioner 20.08.2007 Exparte rejection of refund application 09.10.2007 Appeal filed challenging order of rejection before the Commissioner (Appeals) 12.12.2007 Intimation regarding change of address to the Respondent. 14.01.2008 Grant of refund by the Customs Authority in an identical transaction of the same appellant 04.11.2009 Exparte rejection of appeal by the Respondent confirming the non-grant of refund In the aforesaid circumstances, the question that arises is whether there is inordinate delay in grant of Bank Guarante ..... X X X X Extracts X X X X X X X X Extracts X X X X
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