2026 (1) TMI 730

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Switzerland. DRI, Lucknow had investigated the case of the importer. During the investigation the importer had deposited the amount of Rs.98,81,642/-, without prejudice to its rights, between 28.08.2017 to 18.09.2017. However, Show Cause Notice bearing No.23/2017/4237 dated 01.02.2018 was issued to the importer by DRI and demanding customs duty amounting to Rs.98,81,642/-. The said proposal got confirmed along with order of imposition of penalty and demand of interest by the Principal Commissioner, ACC Import vide Order-in-Original No. 08/2019-20 dated 03.12.2019. In an appeal against the said Order-in-Original, the Tribunal has set aside the same vide final order dated 05.07.2023 in Customs Appeal No. 50643/2020 reported as 2023-TIOL-837-....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....thority but had set aside the said demand vide Final Order No. 50829-50830/2023 dated 05.07.2023. Once the very basis of retention of the deposit stood extinguished, the department was bound to refund the amount with interest. But original adjudicating authority sanctioned refund without interest and Commissioner (Appeals) on 06.09.2024 sanctioned interest on the refund but from the date immediately after the expiry of 3 months from the date of receipt of refund application till the date of the sanction of such refund, as per Section 27A of the Customs Act, 1962 and not from the date of deposit. The said refund application was filed for the second time after the Hon'ble CESTAT order i.e. on 27.10.2023. It is submitted that the appellant is ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d to refund of the amount deposited along with the interest at the prescribed rate from the date of making the deposit to the date of refund in terms of Section 35FF of the Central Excise Act, 1944 or Section 129EE of the Customs Act, 1962." Any deposit in the hands of department has to be refunded with interest from the date of deposit in terms of Section 129EE of the Customs Act, 1962. 5.2 It is also settled that amount paid during investigation is as good as the amount paid under Section 35F of the Central Excise Act. Section 35FF of the Act talks about interest on delayed refund of the amount deposited under Section 35F. This Section got amended in the Year 2014. The perusal makes it clear that prior 2014, the assesse used to be e....