TaxTMI 
TaxTMI 
2019 (6) TMI 752
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.... is involved in the business of importing fruit juice. During the relevant period, it filed three Bills of Entry, namely, 838077, dated 20.01.2006 ; 870263, dated 08.09.2005 ; and 765947, dated 07.03.2005 for the clearance of fruit juice, which were assessed for duty under CTH 20098090 at BCD 30%, CVD 16%, Cess 2% and CEX Cess 2% totalling to Rs. 8,34,774/- and cleared for payment of duty. Subsequently, the petitioner came to understand that the goods are classifiable under CTH 2001.10 and vide Notification No.6/2002 Sl.No.9, amendment was issued exempting the said goods imported by the petitioner from Countervailing Duty (CVD). 3. Therefore, the petitioner submitted refund application dated 20.01.2006 and also the letter dated 01.03.2006 ....
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....f three months from the date on which the refund claim became due. 7. The respondent passed the impugned proceedings in Order-in- Original No.48134/16, Job No.47133/16, dated 01.07.2016 rejecting the claim of refund along with interest. Hence, this writ petition. 8. A counter-affidavit dated 29.11.2016 has been filed by the respondent refuting the allegations. It is stated therein that the process of refund was done within the stipulated time of three months and that the claim of interest would not arise. The relevant portion of the counter-affidavit is extracted as follows : "13. Further, it is stated that the paras (2) and (3) of Regulation 2 of Customs Refund Application (Form) Regulations, 1995, stipulate as follows : "(2) The app....
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....n there is an inordinate delay in refunding the amount, there is a statutory duty on the respondent under Section 27A of the Customs Act to accord refund with interest, which has been upheld by orders of various High Courts. At this juncture, it is relevant to extract Section 27A of the Customs Act usefully as hereunder : "27A. Interest on delayed refunds.- If any duty ordered to be refunded under sub-section (2) of section 27 to an applicant is not refunded within three months from the date of receipt of application under sub-section (1) of that section, there shall be paid to that applicant interest at such rate, not below five per cent and not exceeding thirty per cent per annum as is for the time being fixed by the Central Government,....
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.....05.2006. The respondent preferred an appeal on 07.06.2006, which was dismissed and the order of the Adjudicating Authority was confirmed. The said order is also put to challenge before the Tribunal, which also agreed with the said authorities by order dated 03.11.2014. 12. Despite the orders in favour of the petitioner and several reminders being given, only a sum of Rs. 3,59,531/- was refunded on 06.07.2015 vide Order-in-Original No.39492/15. The entire amount was not refunded and there appears to be a mistake, as note was not drawn for all the bills and there was an outstanding of Rs. 53,583/-. Besides, there was an inordinate delay in refunding the amount. Hence, as per Section 27A of the Customs Act, the petitioner has made his clai....
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.... has relevance for the purpose of grant of interest under Section 27A of the Customs Act. Therefore, the liability of the Revenue to pay interest would arise immediately after the expiry of three months from the date of receipt of the application till the date of refund of such amount." 13.3. A Division Bench of the Delhi High Court in Rajan Overseas V. Commissioner of Central Excise, (2014) 308 ELT 443, while dealing with a similar claim of refund, which was repudiated by the authorities under the Central Excise Act, granted interest to the petitioner on the belated payment from the expiry of three months from the date, when the claim was first rejected by the concerned Authority till the refund of the amount. 14. Learned counsel for the....