Appeals allowed, Authority to reconsider interest claim. First Appellate Authority's decision set aside.

The appeals were allowed, directing the Adjudicating Authority to reconsider the appellant's interest claim in light of relevant judgments. The First Appellate Authority's decision on interest was set aside, and the matter was remanded for further proceedings, including a personal hearing for the appellant.

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Issues:
1. Admissibility of refund on account of payment of SAD.
2. Whether interest on delayed refund can be allowed under Notification No 102/2007/Cus.

Issue 1 - Admissibility of refund on account of payment of SAD:
The appellant filed appeals regarding Order No 201-202/2014CUS/Commr(A)/Ahd dated 9.5.2014, questioning the admissibility of a refund related to the payment of SAD. The First Appellate Authority ruled in favor of the appellant, stating that the refund was admissible. However, the Authority also held that interest on delayed refund cannot be granted under Notification No 102/2007/Cus, citing the case of Global International Vs CCE, Kanpur, 2013(292)ELT.102(Tri.Del.).

Issue 2 - Allowance of interest on delayed refund under Notification No 102/2007/Cus:
The appellant's representative relied on the judgment of the Honorable Madras High Court in the case of KSJ Metal Impex (P) Ltd vs 2013(294)ELT.211 (MAD) to argue that interest on refunds under Notification No 102/2007 and CBEC Circular No 6/2008-CUS is payable as per Section 27 of the Customs Act, 1962. On the contrary, the Revenue's representative referred to another judgment of the Madras High Court in the case of Shakun Overseas Ltd Vs CCE(Appeals), Chennai [2013(297)ELT.14 (Mad)], which stated that interest should only be calculated after 3 months from the date of the order passed by an Appellate Authority. The Adjudicating Authority did not reject the appellant's claim for interest, as confirmed during the hearing.

Comprehensive Analysis:
After hearing both parties and examining the case records, it was noted that the Commissioner (Appeals) rejected the appellant's claim for interest on delayed refund based on the CESTAT judgment in the Global International case. However, the Madras High Court in the KSJ Metal Impex case held that refunds under Notification No 102/2007 should be treated as refunds under Section 27 of the Customs Act, 1962. Since the Adjudicating Authority did not address the interest claim in their orders dated 13.9.2013 and 9.10.2013, the First Appellate Authority's decision on interest was set aside. The matter was remanded to the Adjudicating Authority to reconsider the appellant's interest claim in light of the judgments cited by both parties. The appeals by the appellant were allowed, directing the Adjudicating Authority to provide a personal hearing to the appellant during the remand proceedings.

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