Home Case Index All Cases Customs Customs + HC Customs - 2019 (5) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (5) TMI 881 - HC - CustomsInterest on the refund u/s 27A - Section 130A of the Customs Act, 1962 - doctrine of Merger - HELD THAT:- The Explanation to Section 27A makes it clear that the orders passed by the Commissioner (Appeals) and the Appellate Tribunal are also deemed to be orders passed u/s 27 (2). In other words what is recognized by the Explanation to Section 27 A is nothing but the common law doctrine of merger. Even if the Assistant Commissioner of Customs rejects an application for refund u/s 27 (2), the moment the said order is set aside on first appeal or second appeal, the order merges. The last portion of the substantial part of the Section 27A makes it clear that the starting point for calculation of interest is the expiry of three months from the date of receipt of the application. The date of commencement of the liability for payment of interest is not relatable to either the date of the original order or the date of the order of the appellate authority but relatable only to the date of expiry of three months from the date of the application - Therefore, it leaves no iota of doubt that the assessee in this case became entitled to interest from the date of expiry of 3 months of the date of application. The date of expiry of the period of three months from the submission of the application, cannot be the date of expiry of three months from the date of the reminder. It is the original application that triggers the period, from which the liability to pay interest on the refund arises for the Department. Therefore, the writ petitions are bound to be allowed. The question of law raised by the Revenue is answered against them and the four appeals are dismissed.
|