CESTAT dismissed appellant-Commissioner's challenge to interest...

CESTAT dismissed appellant-Commissioner's challenge to interest entitlement on refunded revenue deposit of Rs. 74,72,348. The Tribunal held that revenue deposits collected by Special Valuation Branch were unauthorized and entitled to refund with interest. Since the original Tribunal order directing refund was not challenged through appropriate statutory instruments, lower authorities were bound to implement it including consequential interest liability. The Commissioner's contention that Section 27A of Customs Act, 1962 was inapplicable to revenue deposit refunds lacked merit as the point of no return was crossed by failure to challenge the Tribunal's clarification. Matter remanded to original authority for fresh decision on enhancement of interest liability, with appeal disposed through remand.