Foreign-currency refund must be converted at the buying rate on the transfer date for RTGS remittance.

Refund of the stated foreign currency amount was to be made in Indian rupees at the buying rate of the US dollar on the date of transfer by RTGS mode, rather than at a later prevailing rate. The direction tied conversion to the transfer date and the remittance method, making the date of transfer determinative for the rupee equivalent. The Customs Department was permitted to make the refund accordingly by the specified deadline.

---

---

Issues: Whether the refund of US $289250 was to be made in Indian rupees at the buying rate on the date of transfer by RTGS mode.

Analysis: The Department sought clarification/modification so that payment could be made in Indian rupees as presently prevailing. The petitioner sought conversion at the buying rate on the date of transfer into the petitioner's account. The direction was framed with reference to the date of transfer and the mode of remittance.

Conclusion: The Customs Department was permitted to refund US $289250 in Indian rupees at the buying rate of US dollar on the date of transfer by RTGS mode on or before 21 February 2014.

---