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2022 (6) TMI 876 - HC - CustomsRefund of amount recovered by the respondents by invoking the Bank Guarantee, alongwith the interest - refund rejected on the ground of time limitation - Section 27 of the Customs Act - HELD THAT:- After litigating in a court of law when orders are passed in favour of the petitioner, they are required to be complied with in letter and spirit. Untenable grounds seeking to question the entitlement of the petitioner, does not lie with the respondents. In case the submissions of the respondents were to be accepted, the same would result in overriding the orders passed by the CESTAT. The same is unacceptable - in the facts of the present case, the respondents were not justified in withholding the said payments. In view of the deliberate withholding of the payments, not only the amount is to be returned to the petitioner but they should also be liable to pay interest on the same. Entitlement for Interest - HELD THAT:- Section 27-A of the Customs Act deals with refund of any claim which is liable to attract interest at the minimum of 5% and the maximum of 30%. The Parliament has enacted this law to ensure that the refunds should carry interest. It would imply that any money belonging to the petitioner, which is with the possession of the respondents, requires to be returned along with the rate of interest mentioned therein. Therefore, whether it is a refund of claim of tax or payment in terms of the order of the Tribunal, the petitioner should be entitled for the interest. Keeping in view the peculiar facts and circumstances involved and especially the objections as raised by the respondents, it is deemed just and necessary that the respondents be directed to pay interest at the rate of 10% per annum from the date of the CESTAT order till the date the payments are made to the petitioner. The said amounts shall be paid within a period of four weeks from today. Petition disposed off.
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