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2014 (10) TMI 268 - HC - CustomsInterest on delayed refund - Held that:- Court is unable to sustain the Tribunal’s order because the amount became refundable to the respondent only based on the judgment of the Supreme Court dated 11-11-2003. Within three months, the respondent made application for refund and within the following two months, department granted refund. The claim for refund based on judgment of the Supreme Court is not comparable with refund on pre-deposit which is a deposit of duty or other demand paid for maintainability of appeal. When such amount paid or bank guarantee furnished is adjusted towards duty payable based on appellate order of the Tribunal, it ceases to be an amount of pre-deposit. So much so, the circular issued by the Board has no application. However, since Supreme Court judgment is binding judgment, it was the duty of the department to grant refund at least within three months from the date of judgment of the Supreme Court. To this extent, we uphold the claim of the respondent put forward before us by the counsel. We, therefore, hold that on general principles the assessee respondent is entitled to interest from 1st March, 2004 till the date of actual refund. - Decided partly in favour of Revenue.
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