TaxTMI 
TaxTMI 
1998 (3) TMI 137
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....intainable. 2. Civil Appeal No. 3374/91. - M/s. Orient Enterprises, Respondent No. 1, had imported consignments of skimmed milk powder from Canada. The Collector of Customs, Cochin, issued show cause notice on the basis that there was undervaluation of the prices in the invoices. The Collector of Customs passed an order for confiscation of the goods but permitted the respondents to redeem the goods on payment of redemption fine of Rs. 8,00,000/-. A penalty of Rs. 2,00,000/- was also imposed. On the basis of the higher price of goods, as assessed, the respondents were also required to pay the difference in customs duty to the extent of Rs. 34,464.23. The assessee filed an appeal against the said order of the Collector of Customs before th....
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.... from the date of payment of the said amount till the date on which it was refunded to the respondents. The said writ petition of the respondents has been allowed by the High Court by Judgment dated May 10, 1991. The High Court has directed the appellants to pay interest @ 12% per annum to the respondents on the sum of Rs. 10,35,000/- from the date of the filing of the revision application before the Central Government till the date of payment. 3.Shri R. Mohan, the learned Senior Counsel appearing for the appellants has urged that the High Court was in error in entertaining the writ petition and giving directions regarding payment of interest on the amount that was collected from Respondent No. 1 on the basis of the order of Collec....
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....ed by the State as tax is not ordinarily maintainable. 5.Shri G.L. Rawal, the learned Counsel appearing for the respondents has, however, submitted that since the amount of Rs. 10,34,464.23 had been illegally collected from them and was retained by the Revenue, the respondents are entitled to payment of interest on the said amount for the period the respondents were deprived of the said amount and that the High Court was justified in entertaining the writ petition and directing payment of interest. The learned Counsel has placed before us the judgments of the various High Courts in which directions have been given for payment of interest while directing refund of tax illegally collected from the assessee. 6.In Suganmal (su....
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....erely ordering a refund of money to the return of which the petitioner claims a right." 7.The Court has emphasised that there was no legal right in the appellant who had filed the writ petition to claim the refund under the relevant statute. 8.In the present case also till the insertion of Section 27A in the Act by Act 22 of 1995 there was no right entitling payment of interest on delayed refund under the Act. Such a right was conferred for the first time by the said provision. Act 22 of 1995 also inserted Section 28AA which provides for payment of interest on delayed payment of duty by a person who is liable to pay the duty. Thus at relevant time there was no statutory right entitling the respondents to payment of interes....
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....id respondent had imported inedible Beef tallow. The Collector of Customs, Bombay, after issuing show cause notice to the respondent passed the order dated May 28, 1983 whereby he held that the goods imported by the respondent were liable for confiscation as the import was contrary to the provisions of the Import Policy and gave option to the respondent to redeem the same on payment of redemption fine of Rs. 1,09,60,000/-. The respondent deposited the said redemption fine and obtained the delivery of goods. The appeal filed by the respondent-company against the said order of the Collector was allowed by the Tribunal by judgment dated February 14, 1990. Special Leave Petition Nos. 14605 and 14606/90 filed by the Revenue against the said judg....