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2016 (4) TMI 767 - MADRAS HIGH COURT

2016 (4) TMI 767 - MADRAS HIGH COURT - 2016 (336) E.L.T. 619 (Mad.) - Seeking direction of refund - interest wrongfully paid by the respondent - import of electrical goods and machinery - availed facility of deferred payment of duty by bonding the goods in a private warehouse - Tribunal directed the refund on the basis of its earlier decision and circular in F.No.475/39/90-Cus.VII dated 8.8.1990 - Held that:- in so far as Section 61(2) is concerned, it refers only to the interest that becomes pa .....

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karan, JJ. For the Appellant : Mr. V. Sundareswaran, SPC For the Respondent : Mr. T. Sundaranathan ORDER Judgment was delivered by V. Ramasubramanian, J. This appeal is filed by the Revenue under Section 130 of the Customs Act, 1962, questioning the correctness of an order passed by the Customs, Excise and Service Tax Appellate Tribunal, directing refund of the interest wrongfully paid by the respondent. 2. Heard Mr.V.Sundareswaran, learned Senior Panel Counsel appearing for the appellant and Mr .....

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the provisions of Section 27 of the Customs Act, without considering the amendment to Section 27 made in 1991 to include refund on interest ? and 3. Whether, on the facts and circumstances of the case, the Appellate Tribunal is right in law in allowing the assessee's appeal without properly considering Notification No.30/99 issued by the CBEC ?" 4. The respondent imported electrical goods and machinery and availed the facility of deferred payment of duty by bonding the goods in a privat .....

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of six months. The Appellate Authority confirmed the same, but the Tribunal reversed the orders and directed refund, on the basis of its earlier decision in Lakshmi Machine Works Vs. Commissioner of Customs [(2008) 230 ELT 183]. Hence, the Revenue is before us. 6. The main contention of the learned Senior Panel Counsel appearing for the appellant is that the Tribunal proceeded on the basis of the circular in F.No.475/39/90-Cus.VII dated 8.8.1990, but that the said circular ceased to have any ef .....

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ded to include the expression 'interest'. Therefore, according to the learned Senior Panel Counsel, there is no distinction between the interest referred to in Section 27(1) and the interest referred to in Section 61(2). 8. But, we do not think that the learned Senior Panel Counsel is correct. The correct expression used in Section 27(1) is 'interest, if any, paid on such duty'. The circular dated 8.8.1990 reads as follows : "F.No.475/39/90-Cus.VII dated 8.8.1990 Goverment o .....

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pplicable." 9. The circular does not refer to Section 27. It refers to only customs duty. Definitely, the law makers have understood the distinction between duty and the interest payable on such duty. If the contention of the learned Senior Panel Counsel is accepted, we may have to read 'interest' into the word 'duty'. The amended Section 27(1) reads as follows : "27. Claim for refund of duty:- (1) Any person claiming refund of any duty and interest, if any, paid on suc .....

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y and interest, if any, paid on such duty, in such form and manner as may be specified in the regulations made in this behalf and the application shall be accompanied by such documentary or other evidence (including the documents referred to in Section 28C) as the applicant may furnish to establish that the amount of duty and interest, if any, paid on such duty, in relation to which such refund is claimed was collected from, or paid by him and the incidence of such duty and interest, if any, pai .....

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