High Court rules appellant entitled to interest under Customs Act, 1962. Interest payable from 1995 Finance Bill assent.

The High Court of Calcutta ruled in favor of the appellant's entitlement to interest under Section 27(A) of the Customs Act, 1962. The Court held that interest was payable from the date after the President's assent to the Finance Bill, 1995 until the actual payment date in 1999, rejecting the Tribunal's basis for denying interest. Justices Bhaskar Bhattacharya and Arun Kumar Bhattacharya delivered the judgment, allowing the reference and directing the issuance of a certified copy to the parties.

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Issues:
1. Entitlement to interest under Section 27(A) of the Customs Act, 1962.

Analysis:
The appeal before the High Court of Calcutta involved a dispute regarding the entitlement to interest under Section 27(A) of the Customs Act, 1962. The appellant had imported polystyrene resin in 1987 and sought clearance under a specific tariff sub-heading. Subsequently, a refund was claimed, leading to a series of legal proceedings spanning several years. The Customs Authorities initially denied the refund, leading to appeals and remands. Ultimately, the Tribunal allowed the appellant's appeal in 1998, directing a refund. However, the issue arose regarding the payment of interest on the delayed refund. The Tribunal had dismissed the appellant's appeal for interest, citing the date of document submission as a basis for denying interest under Section 27(A) of the Act.

The High Court analyzed the provisions of Section 27(A) of the Act, which stipulate the payment of interest on delayed refunds. The Court noted that the appellant had filed the refund application in 1987, and the Tribunal's order in 1998 should be deemed as an order under Section 27(2) for the purpose of Section 27(A). The Court emphasized that interest would be payable if the duty ordered to be refunded is not repaid within three months of the application. However, a proviso to Section 27(A) was introduced before the Finance Bill, 1995 received the President's assent, affecting the calculation of interest.

The High Court held that the appellant was entitled to interest from the date after the President's assent to the Finance Bill, 1995 until the actual payment date in 1999. The Court clarified that the Tribunal had erred in considering the claim filing date as December 1998, whereas the correct date was 1987. The Court allowed the reference, ruling in favor of the appellant's entitlement to interest as per the provisions of Section 27(A) of the Act. The judgment was delivered by Justice Bhaskar Bhattacharya, with agreement from Justice Arun Kumar Bhattacharya. The Court also refused a stay on the order and directed the issuance of a certified copy of the judgment to the parties.

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