High Court quashes denial of interest on delayed refund, orders re-examination of shipping bills. The High Court of Bombay quashed the communications rejecting a private limited company's claim for interest on delayed refund of drawback under section ...
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High Court quashes denial of interest on delayed refund, orders re-examination of shipping bills.
The High Court of Bombay quashed the communications rejecting a private limited company's claim for interest on delayed refund of drawback under section 75A of the Customs Act, 1962. The court directed the Deputy Commissioner of Customs to thoroughly examine each shipping bill to determine the due date of drawback payment and calculate interest. The impugned communications were set aside, and the Petitioner's application was restored for further action by the Deputy Commissioner of Customs within twelve weeks.
Issues involved: The judgment involves the issue of interest on delayed refund of drawback under section 75A of the Customs Act, 1962.
Details of the Judgment:
Issue 1: Delayed refund of drawback The Petitioner, a private limited company engaged in the export of readymade garments, applied for interest on delayed refund of drawback under section 75A of the Customs Act, 1962. The Petitioner claimed entitlement to drawback for exports made under 17 shipping bills. The impugned communications rejected the Petitioner's prayer for interest, citing pending verification of information for two shipping bills as a reason for delay. However, the communication failed to address the delayed payment issue for the remaining 15 shipping bills. The court held that a thorough inquiry into each shipping bill was necessary to determine the due date of drawback payment and calculate interest accordingly. As this inquiry was missing in the impugned order, the court quashed the communications and directed the Deputy Commissioner of Customs to conduct the required examination and take necessary steps within twelve weeks.
Conclusion: The High Court of Bombay quashed the impugned communications dated 2 November 2020 and 13 May 2021, and restored the Petitioner's application for interest under section 75A of the Customs Act, 1962 to the Deputy Commissioner of Customs for further action. The court disposed of the writ petition accordingly.
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