TaxTMI 
TaxTMI 
2023 (3) TMI 652
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....efund applications were received and acknowledged by the office of the respondent concerned on the dates mentioned in the chart annexed to the writ petition and that those dates were not disputed by the respondents in their affidavit-in-opposition. It is the case of the petitioner that no application has been returned under the Customs Refund Application (Form) Regulations, 1995, which prescribes 10 days for return of the application with deficiency memo (Regulation 2 (2)) in case it was found incomplete. Few queries were made by respondent concerned after 8-12 months of such applications, for supply of documents for ministerial and administrative function which the petitioner answered. Refunds were made allegedly after delay of more than 90 days of receipt of applications for refund and for which respondents are liable to pay interest under Section 27A of the Customs Act, 1962, according to the petitioner. Petitioner in support of its claim of interest submits as follows: Interest provision becomes applicable after 90 days of receipt of application under 27A of the aforesaid Act. The defective application is to be returned as prescribed under the aforesaid Regulation. The refun....
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....ion 27A of the Customs Act, 1962, in this case does not and cannot arise at all. Thus on meticulous examination of aforesaid legal provisions it is clear that an application for refund contemplated under the Customs Act, 1962, can be treated as an application only when it is supported by all the requisite statutory documents. All statutory documents means and includes supporting documentary evidence prescribed under Section 27 (1A) of the aforesaid Act. Mr. Kundalia submits that the Regulation 2 (3) of the aforesaid Regulations, 1995, relied upon by Mr. Mehta, has no manner of application under Section 27A of the Customs Act. He further submits that the Explanation appended to Regulation 2 of the Customs Refund Application (Form) Regulations, 1995, provides that "For the purposes of payment of interest under Section 27 A of the Act, the application shall be deemed to have been received on the date on which a complete application, as acknowledged by the Proper Officer, has been made." Learned Advocate for the respondents submits that the Explanation appended to Regulation 2 of the Customs Refund Application (Form) Regulations, 1995, makes it crystal clear that unless an applicati....
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....cation viz. 10th October, 2007 till the date of actual refund viz. 16th August, 2017 under Section 27A of the Customs Act, 1962. In the aforesaid case also the deficiency memo was not issued to the petitioners and the refund application was not disputed by the revenue and as such the aforesaid case is factually distinguishable and not applicable in this case according to the respondents. Learned Advocate for the respondents submit that the decision in the case of Commissioner of Customs, Visakhapatnam -Vs- Gaytri Timber PVt. Ltd. reported in 2019 (367) ELT 772 (AP) is also not applicable in the present case since in the said case it was held by the Hon'ble Court that Grant of interest by Adjudicating Authority from the date of the reminder sent after the disposal of the writ petitions was clearly contrary to the mandate of Section 27A of the Customs Act, 1962, and that liability to pay interest on the refund arises from expiry of three months from the date of receipt of the application and in the aforesaid case no deficiency memo was issued to the petitioner and as such the said case is factually distinguishable and it has no manner of application in the facts and circumstances of....
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....onths from the date of receipt of such application till the date of refund of such duty." Some Regulations and provisions of Customs Refund Application (Form) Regulations, 1995, which are relevant to this case are quoted as hereunder: "2. Form and manner of filing application for refund. - (1) An application for refund shall be made in the prescribed Form appended to these regulations in duplicate to the Assistant Commissioner of Customs, having jurisdiction over the Customs Port, Customs airport, land customs station or the ware house where the duty of customs was paid. (2) The application shall be scrutinised for its completeness by the proper officer and if the application is found to be complete in all respects, the applicant shall be issued an acknowledgment by the Proper Officer in the prescribed Form appended to these regulations within ten working days of the receipt of the application. (3) where on scrutiny, however, the application is found to be incomplete, the Proper Officer shall, within ten working days of its receipt, return the application to the applicant, pointing out the deficiencies. The applicant may resubmit the application after making good the defi....
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....mplete Form with requisitioned documents and even if this fact is disputed by the petitioner, it is a matter of evidence regarding what were the requisite documents and in what manner applications for refund in question were complete or not, such facts based on material evidence cannot be reappreciated by this writ court. (v) Though in support of its claim for interest, petitioner relies on Regulation 2 (2) of Customs Refund Application (Form) Regulations, 1995, but if Regulation 2 (3) of the aforesaid Regulations is read with Explanation thereunder, on plain reading of the same it appears that the applications for refund cannot be accepted automatically and the authority has been empowered to scrutinise for its completeness and the application shall be deemed to have been received only on the date on which a complete application has been submitted along with requisite documents and in this case completeness of such applications are disputed by the respondents which is apparent from record since after receipt of such applications, deficiencies memos were issued and even the petitioner have responded to the said deficiencies memos and as such it is not a clearly admitted and undi....