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2017 (11) TMI 1340 - HC - CustomsInterest on refund - redemption fine and bank guarantee - order of the adjudicating authority having reversed, petitioners become entitled to the amount deposited, being there neither any challenge to the order of Tribunal nor was the amount stayed by the Higher Court - Whether the petitioners is entitled to interest on redemption fine and Bank guarantee? - Held that: - As per the settled law, it may be open for the Department to challenge the said judgment before the higher Court, but cannot avoid implementation of the Tribunal’s order for an indefinite period without stay being granted by the Higher Court - In the present case, as on date, admittedly, no stay has been granted, within a reasonable time after the judgment of the Tribunal, therefore, the Department was expected in law to implement the directions, which would result into refund of sum of ₹ 10 lakhs deposited by the petitioners and releasing of Bank Guarantees. Though the petitioners reminded the Department on numerous occasions, this was not done for over three years - Merely because the Customs Act, 1962 does not make any provision for granting interest under such eventuality, would not mean that the Court, in exercise of writ jurisdiction, cannot direct the Department to pay the same. When the facts are gross, to ensure refund of the amount years later without interest would be doing injustice. The Department must pay interest on the sum of ₹ 10 lakhs deposited by the petitioners to the extent of delay in refunding the same - On the Bank Guarantees, we do not see any case for granting interest since the petitioners were not made to deposit the same with the Department. The Respondent is directed to pay interest at the rate of 8% per annum upon completion of period of three months from the date of judgment of the Tribunal till actual payment of refund - no interest on the Bank Guarantee component - petition allowed in part.
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