2022 (11) TMI 1553 - HC - Customs

Rate of interest awarded - respondent fairly concedes that the statutory rate of interest payable is 6% and not 12% per annum - HELD THAT - The present appeal is allowed and the impugned order is modified by reducing the rate of interest from 12% to 6% per annum from the date of deposit till the date of release.

Summary

The Delhi High Court, through Hon'ble Justices Vibhu Bakhru and Purushaindra Kumar Kaurav, heard an appeal filed by the Commissioner of Customs (Exports) challenging a CESTAT order dated 14.03.2022. The CESTAT had directed the Revenue to refund Rs.18,68,000/- to the respondent along with interest at 12% per annum under Section 27 of the Customs Act, 1962. The appellant confined the appeal to contesting only the rate of interest awarded, arguing that the statutory rate is 6% per annum, not 12%. The respondent conceded this point. The Court accordingly allowed the appeal to the limited extent of modifying the interest rate, holding that the interest payable shall be at the statutory rate of "6% per annum from the date of deposit till the date of release," thereby reducing the rate from 12% to 6%.