Tribunal: No Interest on Seized Currency Release; High Court or Supreme Court Can Order Interest

The Tribunal ruled that interest is not payable on seized currency upon release under the Customs Act, as it falls under the definition of goods. It highlighted that only the High Court or Supreme Court could order interest payment for delays in returning seized goods, not the Tribunal. The order directing interest payment was set aside, allowing the Revenue's appeal and rejecting the respondent's claim for interest at an enhanced rate.

---

---

Issues:
Interpretation of provisions for payment of interest on seized currency under the Customs Act, 1962.

Analysis:
The case involved the seizure of Indian currency from a residence under suspicion of being proceeds of smuggled goods. The Commissioner of Customs ordered confiscation, but the Tribunal later directed the release of the currency. Despite the Tribunal's order, the currency was not returned promptly. The respondent sought interest on the delayed return of the currency. The issue at hand was whether interest was payable on the seized currency upon its release.

The Departmental Representative argued that interest under Section 27A of the Customs Act is only applicable to delayed duty refunds, not to the return of seized currency. The respondent contended that interest should be paid for the delay based on relevant judgments. The Tribunal examined the provisions of the Customs Act and the definition of goods, concluding that interest is not payable on seized currency upon release, as it falls under the definition of goods. The Tribunal emphasized that Section 27A pertains specifically to duty refunds, not to seized goods. The Tribunal highlighted that while the delay in returning the currency was unjustified, only the High Court or Supreme Court could order interest payment for such delays, not the Tribunal. Consequently, the Tribunal set aside the order for interest payment, allowing the Revenue's appeal.

In conclusion, the Tribunal held that interest is not payable on seized currency upon its release, as the Customs Act does not provide for such payments. The Tribunal emphasized that the jurisdiction to order interest for delays in returning seized goods lies with higher courts, not the Tribunal. As a result, the order directing interest payment was set aside, and the Revenue's appeal was allowed, rejecting the respondent's claim for interest at an enhanced rate.

---