Home Case Index All Cases Customs Customs + AT Customs - 2023 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (9) TMI 1014 - CESTAT AHMEDABADRejection of claim of interest on refund - rejection on the ground that the appellant was granted the refund within three months from the order passed by Commissioner (Appeals) - continuation of proceeding during moratorium period - HELD THAT:- As regard the issue that when the IBC proceeding is undergoing and pending before the NCLT whether this appeal can be heard and disposed of. It is found that the moratorium is provided under Section 14 of the IBC Code, the Delhi High Court in POWER GRID CORPORATION OF INDIA LTD VERSUS JYOTI STRUCTURES LTD. [2017 (12) TMI 1660 - DELHI HIGH COURT] dealt with the provision of Section 14 of IBC and in view of the judgment read with Section 14 it is clear that the moratorium provision would apply to all those proceedings which are against the corporate debtor. However, in the present appeal the proceeding is in favour of the appellant (Corporate Debtor) as in this appeal the appellant is claiming the interest on refund. Therefore, following the aforesaid order of the Delhi High Court by conclusion and disposal of this appeal would not affect adversely the resolution plan therefore, in this appeal proceeding can be continued and appeal can be disposed of. Therefore, the appeal is taken up for disposal. The learned Commissioner (Appeals) rejected the claim of interest on refund referring the provision of Section 27 A of Customs Act, 1962 on the ground that the refund was payable within three months from the order dated 13.04.2012 of Commissioner (Appeals) whereby the refund was allowed - From the plain reading of Section 27A it is clear that the assessee is entitled for the refund if the same is not refunded within three months from the date of receipt of application under sub section (1) of Section 27. In the clear provision under Section 27 A and the landmark judgment of Hon’ble Supreme Court in the case of Ranbaxy Laboratories Ltd [2011 (10) TMI 16 - SUPREME COURT], the appellant is entitled for interest on the amount already refunded for the period from 22.07.2003 (three months after the date of application) till 25.06.2012 (date of grant of refund). As regard the contention of the Commissioner (Appeals) that interest is payable after three months from the date of Commissioner (Appeals) order wherein the refund was allowed is absolutely absurd and contrary to Section 27 A and principle laid down by Hon’ble Supreme Court in the case of Ranbaxy Laboratories Ltd - the appellant is legally entitled for interest on the refund granted to them after three months from the date of the application i.e. 22.07.2003 till the grant of refund i.e. 25.06.2012 as per the rate of interest as prescribed under the Customs Act, 1962. Appeal allowed.
|