TaxTMI 
TaxTMI 
2026 (9) TMI 103
X X X X Extracts X X X X
X X X X Extracts X X X X
.... from their unit in Kandla Special Economic Zone. The matter travelled to CESTAT, Ahmedabad, which, vide Final Order No. A/10315-10316/2023 dated 23.02.2023 set aside the adjudication order passed by L.d. Commissioner of Customs, Kandla (in the second round of litigation) and allowed the appeal filed by appellant, with consequential relief. Pursuant to above, the appellant filed refund claim in respect of the amount of Rs. 20.0 lakh deposited during investigation. The appellant also claimed interest. While refund of Rs. 20.0 lakh was allowed, the claim of interest was rejected on the ground that the appellant was not entitled to interest under section 27A of Customs Act, 1962 as refund has been sanctioned within 03 months from the date of f....
X X X X Extracts X X X X
X X X X Extracts X X X X
....lowed without reservations or getting into the question as to whether same was initially granted in equity jurisdiction or on the basis of statutory provisions. The appellants stated that the consistent legal approach of the High Courts and Supreme Court allowing interest even in the absence of provisions and validated by this Tribunal cannot be and should not be ignored simply on the basis of lack of statutory provisions when the question involves compensation for usage of Revenue deposits by the Government. 8. This court finds that when a decision has been consistently followed even if it was initially delivered in Writ jurisdiction or was embedded to a legal principle of doctrine of compensation for deposits retained. Consistenc....
X X X X Extracts X X X X
X X X X Extracts X X X X
....elevant observations contained in paragraphs 5 to 5.4 of the said decision are reproduced herein below: "5. I have heard the learned Chartered Accountant for the appellant and learned AR for the department and perused the record. In M/s. Fujikawa Power and M/s. Kenzo International vs. CCE & ST, Chandigarh - 2019 (11) TMI 1997 - CESTAT Chandigarh, the CESTAT Chandigarh has relied upon the law laid down by Hon'ble Apex Court in the case of Sandvik Asia Limited (supra). The Tribunal has quoted para 45 of the judgment delivered by Hon'ble Apex Court in said case which is being reproduced:- "45. The facts and the law referred to in paragraph (supra) would clearly go to show that the appellant was undisputably entitled t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sing great prejudice to the lakhs and lakhs of assessees. Very large number of assessees are adversely affected inasmuch as the Income Tax Department can now simply refuse to pay to the assessees 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 Rs. 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 of justice and the rul....
X X X X Extracts X X X X
X X X X Extracts X X X X
....2 (285) E.L.T. 188 (Cal.), wherein the peremptory directions of the Apex Court in the judgment of ITC Ltd. (supra) was considered and ordered 12% interest, and further held that when the High Court directed the respondents to pay interest to the appellant in terms of the circular dated 8-12-2004 on the pre-deposit of the delayed refund within two months, it has to be construed that, the Court meant the rate of interest which was awarded by the Supreme Court in the case of Commissioner of Central Excise v. ITC Ltd., which was the rate quantified by the Supreme Court in the absence of any statutory provisions in the Act in question. Even though various other judgments of various High Courts and the various Tribunals was brought to my notice a....