Delayed customs refund interest remains payable when the refund order is operative and unstayed.

Interest was payable on delayed customs refund where the refund order had not been stayed and had already been implemented. The earlier appellate order remained operative and binding while the Revenue's challenge was pending, so the consequential refund benefit could not be denied merely because further proceedings were continuing. The Tribunal also relied on the CBEC circular requiring timely implementation of refund orders in the absence of a stay. Interest was treated as a consequential incident of the refund rather than a separate relief that could be withheld, and the order granting interest was sustained.

---

---

Issues: Whether interest was payable on the delayed grant of customs refund when the refund order had not been stayed and had already been implemented.

Analysis: The refund arising from the earlier appellate order had already been sanctioned and paid, while the Revenue's challenge to that order was pending without any stay. In such circumstances, the appellate order remained operative and binding, and the consequential benefit flowing from it could not be denied merely because further proceedings were pending. The Tribunal also noted the CBEC circular requiring implementation of refund orders in the absence of a stay within the prescribed time. Interest was treated as a consequential incident of the refund and not as a separate relief to be withheld on this ground.

Conclusion: Interest on the delayed refund was payable, and the order granting such interest was sustained.

---