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2015 (9) TMI 34 - KARNATAKA HIGH COURTRefund of Duty – Payment of Interest – delay in refund - Aggrieved by order of tribunal, granting refund of custom duty along with interest, revenue preferred present appeal – Whether Revenue was liable to pay interest on refund of duty – Held that:- Section 27-A makes it clear that interest would be payable if amount is not refunded within three months from date of application – Explanation of provision only means that liability to pay amount would arise after order of refund of amount is finalized, either in appeal or by Commissioner, Tribunal or Court, but such liability would be from three months after date of application – Same cannot be interpreted that liability to pay interest would be from date of order of Tribunal or Court, which may be passed in appeal – Supreme court in case of Ranbaxy Laboratories Ltd. [2011 (10) TMI 16 - Supreme Court of India] held that interest has to be paid from three months after date of application filed by respondent – Thus, liability to pay interest would be from three months after date of application till date of its actual payment – Also respondent would be entitled to costs or compensation for high handedness of appellant, by initially not refunding amount for over 12 years, and then refusing to pay interest even after order of Tribunal – Decided against Revenue.
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