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2024 (2) TMI 1146 - HC - CustomsSeeking refund the pre-deposit along with applicable interest - recovery of cash and seizure of goods of foreign origin - contravention of EXIM Policy - seized u/s 110 - seized goods released provisionally upon furnishing a bond and a bank guarantee - confiscation - penalty imposed - whether the petitioner is entitled to the claim of interest on the entire amount deposited by him as redemption fine and penalty ? - HELD THAT:- Admittedly, the redemption money and penalty was paid before filing the appeal by getting the bank guarantee encashed vide letter. Admittedly, the Tribunal has set aside the Order-in-Original and granted the consequential benefits to the petitioner. Revenue cannot be permitted to enrich itself at the cost of the petitioner. It may have earned the interest on the redemption and the penalty amount deposited by the petitioner, which amount was ultimately found to be refundable. Relying upon the decision of the Supreme Court, the Division Bench of the High Court in R.H.L. Profiles Ltd. Vs. Commr. Of Cus., Ex. And Service Tax [2017 (4) TMI 1252 - ALLAHABAD HIGH COURT], held that on the amount which was illegally confiscated by the Revenue and ultimately refunded, the assessee-appellant is entitled to interest and the department is under obligation to pay the same. Revenue has retained the redemption money and the penalty amount without any right and therefore in view of the decision of the Hon’ble Supreme Court in the case of Tata Chemicals Limited [2014 (3) TMI 610 - SUPREME COURT], we are of the view that respondent is under obligation to grant interest to the petitioner on the whole amount (redemption charges and penalty) and not just on the pre-deposit amount, which was the statutory requirement under Section 129E of the Customs Act, 1962. We accordingly quash the impugned Corrigendum dated 10.02.2023 issued by Assistant Commissioner (Refund) and direct the respondent to refund to the petitioner along with interest at the rate of 6% per annum from the date of the deposit till the date of refund. Respondent is directed to process the refund within two weeks. Petition is disposed of along with pending application.
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