TaxTMI 
TaxTMI 
TaxTMI 
2024 (5) TMI 530
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....Customs Act, 1962 at applicable rate for the period 09.12.2013 to 27.11.2019. (ii) For an amount of Rs.4,14,316/- interest is payable in terms of Section 27A of the Customs Act, 1962 at applicable rate for the period 11.05.2014 to 27.02.2019. (iii) For an amount of Rs.10,23,522/- interest is payable in terms of Section 27A of the Customs Act, 1962 at applicable rate for the period 11.05.2014 to 27.02.2019. 2. The said order has been passed against three Order-in- Original bearing Nos. 174/2022 dated 02.02.2022, 173/2022 dated 02.02.2022, 127/2021 dated 29.12.2021. Three of these orders were set aside by the impugned Order-in-Appeal. The facts in brief relevant for the present adjudication are as follows: 2.1 The appellant had filed....
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....t any basis. The appellant had deposited the requisite differential Duty of Customs. This value enhancement was subsequently set aside by the Learned Commissioner (Appeals). The appellant submits that rejection of the value enhanced by the Assessing Officer demonstrates that the appellant was not required to make payment of the amounts of Rs.5,04,915/-, Rs.4,14,316/- and Rs.10,23,522/- at the time of imports made from 01.05.2013 to 14.07.2013. Hence these amounts retained by the Customs during all these years i.e. with effect from payment of the amount by appellant till the said demand got set aside i.e. from 2013 to 2019 should be treated as revenue deposit with the exchequer. The amounts deposited were ultimately refunded to the appellant....
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....nd applications dated 10.09.2013, 12.02.2014 and 12.02.2014 respectively were filed and those were sanctioned vide Order-in-Original No. 141 dated 27.11.2019, Orderin- Original No. 2069 dated 27.02.2019 and Order-in-Original No. 2070 dated 27.02.2019, however, without the amount of interest. 7. From the above facts, it is clear that the amount in question is an amount of differential duty of customs as was deposited by the appellant but was challenged by way of filing an appeal. This particular fact along with the fact that the those appeals were allowed in favour of appellant , is sufficient for me to hold that three of the impunged amounts, refunds whereof have already been sanctioned, were lying with the department as mere deposit since....
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....f the said amount. As per Article 300A of the Constitution of India also, no person shall be deprived of his property, save by authority of law. Once the self assessed value of the appellant has been accepted, the differential duty which was already recovered from the appellant cannot be called as the amount of duty or the amount collected under the authority of law. It definitely is the property of the appellant which remained with the department since the day of the deposit. 8. The Hon'ble Apex Court subsequently in the case of Sandvik Asia Ltd. Vs. Commissioner of Income Tax-I, Pune reported as 2006 (196) ELT 257 (SC) has held as follows: "45. The facts and the law referred to in paragraph (supra) would clearly go to show that the app....
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....ory in nature and thereby causing great prejudice to the lakhs and lakhs of assesses. Very large number of assesses are adversely affected inasmuch as the Income Tax Department can now simply refuse to pay to the assesses amounts of interest lawfully and admittedly due to that as has happened in the instant case. It is a case of the appellant as set out above in the instant case for the assessment year 1978-79, it has been deprived of an amount of 40 lakhs for no fault of its own and exclusively because of the admittedly unlawful actions of the Income Tax Department for periods ranging up to 17 years without any compensation whatsoever from the Department. Such actions and consequences, in our opinion, seriously affected the administration ....
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....itled to claim the interest on three of the amounts as have already been refunded to him. The interest shall accrue from the date of the payment of the said amount with the department. 10. I observe that Commissioner appeals also vide the order in question while relying upon the decision of this tribunal in the case of M/s S. S. Dyes & Chemicals reported as 2016 (331) E.L.T. 477 Tri. Mum. has held appellant entitled to interest however at applicable rates. Hence the issue of the rate of interest acquires importance. I observe that the only provision in the Customs Act dealing with interest is Section 27A. The rate prescribed under the said provision is between at the rate of 5% to at the rate of 30% per annum. Ld. DR has relied upon a Noti....