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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
BHARGAV D. KARIA, PRANAV TRIVEDI
Dhrangadhra Chemical Works Ltd. – Appellant
Versus
Commissioner Of Customs – Respondent
JUDGMENT :
(PER : HONOURABLE MR. JUSTICE BHARGAV D. KARIA)
1. Heard learned advocate Mr.Sudhanshu Bissa for learned advocate Mr. Paresh Dave for the appellant and learned advocate Mr. Deepak Khanchandani for the respondent.
2. This appeal is filed under Section 130 of the Customs Act, 1962 (for short ‘the Act’) arising out of Final Order dated 23.11.2007 passed by the Customs, Excise & Service Tax Appellate Tribunal, Ahmedabad (for short “the CESTAT’) in Appeal No. C/6/2007.
3. This Court by order dated 25.1.2008 admitted the appeal in terms of the following question:
“Whether the Revenue was liable to pay interest on delayed refund of pre-deposit of penalty amount when such pre-deposit was not returned/ refunded to the appellant within three months after the appeal was allowed in favour of the appellant?”
4. Brief facts of the case are as under:-
4.1 The appellant company is, inter alia,engaged in the business of manufacture of products like Soda Ash. The appellant imported certain machineries which was subjected to some dispute on valuation. The Commissioner of Customs, Kandla adjudicated the case in 1991 confirming differential duty of Rs.1,46,68,637.76 and imposed penalty of Rs.50 lak
The court ruled that interest is payable on delayed refund of pre-deposit after three months from the application date, as pre-deposits do not equate to duty or penalty payments.
The court established that interest on delayed refunds of pre-deposits can be claimed at 12% per annum based on judicial precedents, despite the absence of a specific statutory provision at the time.
Appellant entitled to interest on delayed refund as per Sections 11B and 11BB of the Central Excise Act, which specifically governs the timing and rate of interest applicable.
Interest on delayed refunds under Section 11BB of the Central Excise Act is payable only after three months from the date of receipt of the refund application, not from the date of deposit.
The requirement of a formal application for refund under Section 11B of the Central Excise Act, 1944, is a statutory mandate, and interest on a delayed refund is payable from the date of receipt of s....
There is always peril in treating the words of a speech or judgment as though they are words in a legislative enactment, and it is to be remembered that judicial utterances made in the setting of the....
The petitioner is entitled to interest at 6% per annum on delayed refund from the date of application, as per statutory provisions of the Customs Act.
Appellants are entitled to 12% interest on delayed rebate claims per Section 11BB of the Central Excise Act, 1944 due to inordinate delay.
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