Refund of Special Additional Duty Ordered; Interest on Delay to be Reassessed Despite Stay Orders.

The CESTAT allowed the petitioner's appeal for a refund of Special Additional Duty under Notification No. 102/2007-Customs. The petitioner also sought interest on the delayed refund under Section 27A of the Customs Act, 1962. The Court found the impugned order contrary to the Act, emphasizing the duty to pay interest on delayed refunds. Despite existing stay orders, the Court set aside the impugned order and remitted the case for fresh consideration, directing the respondent to issue a new order while ensuring the petitioner's right to be heard. The writ petitions were disposed of without costs, and related miscellaneous petitions were closed.

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Issues:
- Delayed payment of Special Additional Duty refund
- Rejection of refund claims
- Appeal before the Appellate Commissioner
- Appeal before the Customs, Excise And Service Tax Appellate Tribunal
- Claim for interest on delayed payment
- Judicial precedents and stay orders affecting the case
- Legal interpretation of Notification No. 102 of 2007-Customs
- Applicability of Sections 27 and 27A of the Customs Act, 1962
- Division Bench decisions from Delhi and Bombay High Courts
- Interference with the impugned order
- Remitting the case back for fresh orders

Analysis:
The petitioner imported metal scrap and sold it below the declared value, leading to rejected refund claims for Special Additional Duty under Notification No. 102 of 2007-Customs. After appeals, the Customs, Excise And Service Tax Appellate Tribunal allowed the petitioner's appeal based on a larger bench decision. The petitioner sought interest on delayed refund payment under Section 27A of the Customs Act, 1962, but the respondent rejected the claim, citing the notification's provisions and lack of interest provision. The respondent also referred to stay orders on related cases from the High Courts of Madras, Delhi, and Bombay.

The petitioner argued that the stay on the Delhi High Court's decision did not negate the claim for interest, citing persuasive value. The Delhi High Court's decisions in similar cases supported the claim for interest despite stay orders. The respondent contended that the impugned order was well-reasoned and that the petitioner's appeal to the Commissioner of Customs (Appeals) was pending, seeking dismissal of the writ petition.

The Court found the impugned order contrary to the Customs Act, emphasizing the duty to pay interest on delayed refund claims under Section 27A. Despite the stay on a related case, the Court set aside the impugned order and remitted the case back for fresh orders, awaiting the division Bench's decision. The Court directed the respondent to pass a new order considering the observations made, ensuring the petitioner's right to be heard in the process. The writ petitions were disposed of accordingly, with no costs incurred, and connected miscellaneous petitions were closed.

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