9911796707
TMI Blog2025 (3) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... ting the claim of interest made by the appellant for the delay in crediting the amount to the account of beneficiary.
As the entire delay has been on the account of the dispute between the Resolution Professional earlier appointed in the matter and the Official Liquidator appointed subsequently, we are in agreement with the findings recorded in the impugned order to the effect that appellant is not entitled to any compensation. Compensation claimed would also not be admissible under Customs Act,1962 as the statute do not provide for any such compensation to be paid in any manner. Commissioner (Appeals) nor this Tribunal, being creature of Customs Act, 1962, can grant any compensation as claimed by the appellant.
Conclusion - Appellant should be paid interest as prescribed under Notification No. 25/2003-Cus(N.T.) dated 21.09.2003 to the appellant for the period of delay in crediting the amount to his account.
Appeal allowed in part. X X X X Extracts X X X X X X X X Extracts X X X X ..... ed Counsel appearing for the appellant and Shri Santosh Kumar learned Authorised Representative appearing for the revenue. 3.2 Arguing for the appellant learned Counsel submit that- There is delay in crediting the amount of refund claim to the account of the beneficiary in terms of Section 27A interest @15% should be paid for the period of delay. Relied upon the decision of Hon'ble Supreme Court in the case of Union of India and others Vs M/s B.T. Patil and Sons Belgaum (Construction) Pvt. Ltd. order dated 05.02.2024 in Civil Appeal No.7238 of 2009. 3.3 Learned Authorised Representative reiterates the findings recorded in the orders of the lower authorities. 4.1 We have considered the impugned orders along with the submissions made in appeal and during the course of argument. 4.2 For rejecting the claim of interest made by the appellant, impugned order records as follows:- "5.1 I have carefully gone through the case records, submissions of the appellant and the grounds of appeal and find that in the present case, the issues to be decided are - (i) Whether interest is payable to the appellant under Section 27A of the Customs Act, 1962? (ii) Whether any compensation on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the refund seeker) the process failed. Thereafter a communication dated 13.02.2020 was sent to the refund seeker (Shri Vikram Kumar) informing him of the issue being faced but nothing was heard from him for months together. Subsequently, on 24.06.2020 the department received letter dated 18.05.2020 from Shri Rajiv Bansal, Liquidator giving details of an account and claiming the said refund amount. However, since the amount involved was huge, the department thought it proper to first seek clarification from Shri Vikram Kumar about the credentials of Shri Rajiv Bansal Confirmation came from Shri Vikram Kumar and once again account details were called from Shri Bansal But this time also the amount could not get transferred. Then Shri Bansal submitted details of another bank account (Yes Bank) vide his letter dated 13.09.2022, into which the refund amount got credited. it is discernible from the entire set of events mentioned above that there was although no delay in sanctioning the amount of refund, the delay in transfer of the same to the account of the recipients was due to the malfunction of the banking system. Had the bank account details been proper or had the banking system be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ustoms issued notification No.22/95-Central Excises (NT) dated 29.05.1995 fixing the rate of interest at fifteen percent per annum for the purposes of the said section. This was also notified by the Central Government in the Official Gazette of India on 29.05.1995. 26. Though it may not be necessary, still we may refer to the circulars dated 20.08.1998 and 05.12.2000 issued by the DGFT. Circular dated 20.08.1998 says that representations had been received from individual exporters as well as clarifications sought for by different regional licencing authorities with regard to availability of deemed export benefit for supply of goods and services to civil construction projects. Circular dated 20.08.1998 says that the issue as to whether supply of goods and services to civil construction projects would be entitled for deemed export benefit or not had been examined in detail, whereafter it was clarified that supply of goods under paragraph 10(2)(d) of the Exim Policy would be entitled to deemed export benefit. Therefore, if within the scope of a work of turn-key civil construction project, supply of goods is included then supply of such goods would be entitled to deemed export benefi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt was factored in the pricing quoted provided other conditions of deemed export benefit were adhered to. 27.1. From a perusal of the minutes of the meeting of the Policy Interpretation Committee held on 07.10.2002, it is evident that the committee had opined to extend the deemed export benefit to those firms which included excise duty component in the tender pricing quoted before the project authority such as the respondent. There is nothing in the minutes to indicate that such benefit was being extended to the respondent as a one off case or by way of concession. 28. Based on the minutes of the Policy Interpretation Committee meeting held on 07.10.2002, DGFT issued letter dated 01.11.2002, a copy of which was marked to the respondent, superseding the previous rejection order dated 21.06.2002 and allowing duty drawback to be paid to the respondent for materials/goods, such as, steel, cement etc., used in the civil works of Koyna Hydro Electric Project. The amount of drawback refundable to the respondent was quantified at Rs.2,05,79,740.00. In the said letter, it was, however, mentioned that grant of drawback should not be treated as a precedent. It was thereafter that cheques ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interest even from 05.12.2000 as directed by the learned Single Judge. It was canvassed before the Division Bench on behalf of the appellants that only due to magnanimity on the part of the Central Government refund of duty drawback under deemed export was paid to the respondent. As such, refund would not carry any interest. 30.2 The Division Bench repelled such contentions advanced on behalf of the appellants and held that in view of the circular dated 05.12.2000, it was clarified that even civil construction works were entitled to the benefit of deemed export under the Exim Policy. After saying so, the Division Bench noted that as a matter of fact, an amount of Rs.2,05,79,740.00 was paid to the respondent as duty drawback. Thereafter, the Division Bench analysed the circular dated 05.12.2000 and upon such analysis it was observed 26 that the position vis-à-vis refund of duty drawback in civil construction work treating it as deemed export was clarified in an earlier circular dated 20.08.1998. Thus, according to the Division Bench, by the year 1998 itself, DGFT had clarified that civil construction work was entitled to the benefit of duty drawback as deemed export. Having ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ired for the purpose of export production could be permitted by the competent authority under five categories of licences mentioned in Chapter VII including special imprest licence. Section 56 provided that a special imprest licence was granted for the duty free import of raw materials, components, consumables, parts, spares including mandatory spares and packing materials to main/sub- contractors for the manufacture or supply of products when such supply were made to projects financed by multilateral or bilateral agencies, such as, the International Bank for Reconstruction and Development under international competitive bidding or under limited tender system. 31.1 In Chapter X 'deemed export' has been defined. It is a transaction in which the goods supplied do not leave the country and the payment for the goods is received by the supplier in Indian rupees, but the supplies earn or save foreign exchange for the country. Section 121 declares that the categories of supply of goods mentioned in the said section would be regarded as 'deemed export' under the Exim Policy provided the goods were manufactured in India and the payment was received in Indian rupees. This included supply o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed as a precedent. As we have seen, respondent is entitled to refund of duty drawback as a deemed export under the Duty Drawback Scheme. The applications for refund were made in 1996. Decision to grant refund of duty drawback was taken belatedly on 07.10.2002 whereafter the payments were made by way of cheques on 31.03.2003 and 20.05.2003. Admittedly, there was considerable delay in refund of duty drawback. 36. As we have already examined, under sub-section (1) of Section 75A of the Customs Act, where duty drawback is not paid within a period of three months from the date of filing of claim, the claimant would be entitled to interest in addition to the amount of drawback. This section provides that the interest would be at the rate fixed under Section 27A from the date after expiry of the said period of three months till the payment of such drawback. If we look at Section 27A, the interest rate prescribed thereunder at the relevant point of time was not below ten percent and not exceeding thirty percent per annum. 37. The Central Board of Excise and Customs vide its notification bearing No.32/1995 (NT) - Customs dated 26.5.1995 had fixed the rate of interest at fifteen percent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd refundable and if the duty is not refunded within a period of three months from the date of receipt of the application to be submitted under sub-section (1) of Section 11B of the Act, then the applicant shall be paid interest at such rate, as may be fixed by the Central Government, on expiry of a period of three months from the date of receipt of the application. The Explanation appearing below Proviso to Section 11BB introduces a deeming fiction that where the order for refund of duty is not made by the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise but by an Appellate Authority or the Court, then for the purpose of this Section the order made by such higher Appellate Authority or by the Court shall be deemed to be an order made under sub-section (2) of Section 11B of the Act. It is clear that the Explanation has nothing to do with the postponement of the date from which interest becomes payable under Section 11BB of the Act. Manifestly, interest under Section 11BB of the Act becomes payable, if on an expiry of a period of three months from the date of receipt of the application for refund, the amount claimed is still not refunded. Thus, the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmissioner is satisfied that the appellant was prevented by sufficient cause from presenting the appeal within the aforesaid period of 60 days, he can allow it to be presented within a further period of 30 days. In other words, this clearly shows that the appeal has to be filed within 60 days but in terms of the proviso further 30 days time can be granted by the appellate authority to entertain the appeal. The proviso to sub-section (1) of Section 35 makes the position crystal clear that the appellate authority has no power to allow the appeal to be presented beyond the period of 30 days. The language used makes the position clear that the legislature intended the appellate authority to entertain the appeal by condoning delay only upto 30 days after the expiry of 60 days which is the normal period for preferring appeal. Therefore, there is complete exclusion of Section 5 of the Limitation Act. The Commissioner and the High Court were therefore justified in holding that there was no power to condone the delay after the expiry of 30 days period." 5.1 Appeal is partially allowed. Appellant should be paid interest as prescribed under Notification No. 25/2003-Cus(N.T.) dated 21.09.2003 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
