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2016 (12) TMI 377 - AT - CustomsRefund claim with interest - amount encashed by the Revenue invoking the Bank Guarantee - time bar - Section 27(1) of C.A. 1962 - Held that: - the encashment of the Bank Guarantee by the department on 17.12.1999 despite they are being an interim order of the Hon'ble High Court not to encash the Bank Guarantee; is an illegal step of the department which amounts to holding back of an amount for which department had no legal sanction and can be termed as an amount retained by the department without authority to law. The office of the Jt. DGFT have subsequently accepted the contention of appellant and held that appellant had to only discharge the differential Customs duty along with interest and composition fees, which enables them to get the export obligation discharged certificate, which would mean that the consignment imported duty free are consumed by the appellant for export of the goods as agreed upon by them when they procured advance licence - averment of the appellant that they have completed the export completion is not contested by the Revenue. The appellant was well within his legal rights to claim the refund of the amount encashed by the Revenue invoking the Bank Guarantee. An application filed by the appellant on 13.10.2001 was correct application which remained unprocessed by the Revenue till 11.05.2005 and the refund was sanctioned on 13.05.2005. In our considered view, appellant is entitled to interest in accordance with law after three months from 13.10.2001 till 13.05.2005 as per Board Circular dated 02.01.2002 - appeal allowed - decided in favor of appellant.
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