TaxTMI 
TaxTMI 
2026 (4) TMI 1291
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....e; (b) Issue appropriate writ, order or direction thereby modifying the Order-in- Original no. 189/2023-24/AM(I)NS(III) passed by Respondent no. 1 [Assistant Commissioner of Customs (NS-III)] on 30/06/2023 directing the Respondent no. 1 to refund the deposited amount of Rs.4,29,98,256/-along with a simple interest ]of 15.45% per annum from date of deposit till realization in peculiar facts and circumstances of the case and in interest of justice; (c) In the interim allow the Petitioners to withdraw the amount deposited as granted by the Order-in-Original no. 189/2023-24/AM(I) NSIII) passed by Respondent no. 1 on 30/06/2023 without prejudice to its rights to accrued interest as prayed aforesaid in peculiar facts of the case & in the interest of justice; (d) Grant ad-interim relief in terms of prayer clause (a), (b) and (c) (e) And be further pleased to pass such other order and grant such other relief as may be deemed fit and proper in the facts and circumstances of the case and interest of justice; 2. The primary grievance of the Petitioner pertains to the non-grant of interest by way of the order dated 30th June 2023 (hereinafter referred to ....
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....29,98,256/-, including duty of Rs. 3,05,70,953/-, plus interest of Rs. 35,87,652/-, penalty of Rs. 85,39,651/- paid by Petitioner No. 1, and penalty of Rs. 3,00,000/- paid by Petitioner No. 2. iv. In the aforesaid refund letter/application, the Petitioners also claimed interest accrued at the rate of 9% per annum from the date of deposit till 31st March 2023, amounting to Rs. 6,46,01,560/- in respect of Petitioner No. 1 and Rs.2,00,285/- in respect of Petitioner No. 2. v. However, by impugned order dated 30th June 2023, Respondent No. 1 granted a refund of Rs. 4,26,98,256/- in favour of Petitioner No. 1 and Rs. 3,00,000/- in favour of Petitioner No. 2, but failed to grant the accrued interest as sought by the Petitioners. vi. Thereafter, on 22nd July 2023, the Petitioners made a representation to grant interest on refund before Respondent No. 2 by way of a letter of even date. However, till date, no response has been received by the Petitioners. vii. Being aggrieved by the action on the part of Respondent No. 1 in not granting interest on the refund amount, the Petitioners have filed the present Petition. In the aforesaid backdrop, the present Pe....
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....ct, 1962. In this case, the said Refund Application was given for duty amount, penalty & interest paid by the Petitioner and the same was sanctioned by the Proper Officer within stipulated time of three months as per Section 27 A of the Customs Act, 1962. 6. This refund arises as per CESTAT Final order no. A/85352- 85354/2023,Dated 25.01.2023. It was sanctioned within time of 3 months as per Section 27 A of the Customs Act 1962. It was not delayed by the proper officer, hence question of interest does not arise. 7. With respect to Paras 9a-9e to of the Petition, the contents thereof are denied. I submit that the Refund Application was filed by the Petitioner herein, on 24.04.2023 and it was sanctioned by the Assistant Commissioner of Customs (Proper Officer) vide Order in Original No. 189/2023-24/AM(I) NSIII dated 30.06.2023 as per the prescribed time in the Customs Act, 1962. The relevant paragraph of Section 27 (1) of the Customs Act, 1962 as given below: 1) Any person claiming refund of any duty- (i) Paid by him in pursuance of an order of assessment; or (ii) Borne by him, may make an application for refund of such duty and interest, ....
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.... 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 of that section, there shall be paid to that applicant interest at such rate, 2[not below five per cent.] and not exceeding thirty per cent. per annum as is for the time being fixed 3[by the Central Government, by notification in the Official Gazette], on such duty from the date immediately after the expiry of three months from the date of receipt of such application till the date of refund of such duty: Provided that where any duty, ordered to be refunded under subsection (2) of section 27 in respect of an application under sub-section (1) of that section made before the date on which the Finance Bill, 1995 receives the assent of the President*, is not refunded within three months from such date, there shall be paid to the applicant interest under this section from the date immediately after three months from such date, till the date of refund of such duty. Explanation.-Where any order of refund is made by the Commissioner (Appeals), Appellate Tribunal 4[, National Tax Tribunal] or any court against an or....