JUDGMENT

(Judgment of the Court was delivered by T.S. Sivagnanam, CJ.)

1. This appeal has been filed by the Customs Department under Section 130 of the Customs Act, 1962 (the Act) challenging the order passed by the Customs Excise and Service Tax Appellate Tribunal, Kolkata (the Tribunal) in Customs Appeal No. 76391 of 2024 filed by the respondent herein dated 07.01.2024. The revenue has raised the following substantial questions of law for consideration:

A. Whether the respondent can approbate and reprobate at this point of time and whether the learned Tribunal acted with perversity, total non application of mind and against the provisions of law, when the respondent has itself prayed for refund by filing application in prescribed form on 05.08.2022 and also accepted that they have done a mistake in filing of the shipping bills and consequently they have even approached the Hon'ble Court for setting aside the orders passed against them and when as per the direction of the Hon'ble Court such shipping bills have been rectified then only the question of grant of refund arises as on the date when the adjudicating authority reassessed the shipping bills and as such the order of the Learned Tribunal cannot be sustained in law?

B. Whether the Learned Tribunal has gone beyond its jurisdiction to award interest @12% p.a w.e.f 11.01.2011 till 5/6.09.2023 when admittedly the amount of excess duty to be refunded to the respondent only crystallized on 05.09.2023 and when the refund amount was crystalized as on 05.09.2023 then the corresponding obligation to pay statutory interest will only commence w.e.f. 06.12.2023 and as such, the order of the learned Tribunal is against the legal principles of law, perverse and in violation of natural justice?

C. When the respondent has itself admitted that there has been mistake on their part while submitting the shipping bills to the department and itself has applied for correction and / or rectification in terms of section 154 of the Customs Act, 1962 of the shipping bills and when after a protracted litigation when the same has been finalized by the adjudicating authority as per the order of the Hon'ble High Court as well as the Learned Tribunal on 05.09.2023 then whether the Learned Tribunal can award interest from 11.01.2011 till 5/6.09.2023 for laches and negligence on the part of the respondent?

D. Whether the respondent is at all entitled for interest on delayed refund of duty when immediately after the refund sanction order dated 05.09.2023 passed by the adjudicating authority the department in terms of section 27(2) of the Customs Act, 1962 has credited the excess amount of duty of Rs.6,93,69,000/- in favour of the respondent on 06.09.2023 (i.e. within one day from the date of order) and as such direction of the Learned Tribunal to pay interest to the respondent @12% p.a w.e.f 11.01.2011 (i.e. after three months from 11.10.2010) till 5/6.09.2023 is contrary to section 27 and 27A of the Customs Act, 1962?

E. Whether the order of the Learned Tribunal is against the statutory prescription and the legal position as prescribed under section 27 and 27A of the Customs Act, 1962 which stipulates the manner and the mode of granting refund of duty and also award of interest?

F. Whether the awarding of interest by the Learned Tribunal @12% p.a w.e.f 11.01.2011 till 5/6.09.2023 is totally beyond the prescribed statutory interest @6% and the said order of the Learned Tribunal is against the principles of law, perverse and against the provisions of the Customs Act, 1962?

G. Whether the order dated 07.01.2025 passed by the Learned Tribunal is in violation of the principles of natural justice and perverse inasmuch as the Learned Tribunal has gone against the legal principle and the statutory prescription as prescribed under the Customs Act, 1962?

2. The facts leading to this appeal filed by the respondent before the Tribunal are culled out as hereunder.

3. The respondent had filed 12 shipping bills during