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TMI Blog2024 (2) TMI 1146X X X X Extracts X X X X X X X X Extracts X X X X ..... 0.04.2023 issued by Assistant Commissioner (Refund) and directions to the respondent to disburse interest amounting to Rs. 7,41,146/- to the petitioner as originally sanctioned vide Order-in-Original No. 13KK/AC/2022-23 dated 23.03.2023, issued by Assistant Commissioner (Refund). FACTS 2. Petitioner, Raj Kumar Batra, is a trader of musical gadgets like car stereo, amplifiers, speakers etc., having its shop under the name and style of M/s. Music Palace at Kashmere Gate, Delhi. He deals in the goods which are manufactured in India as also the goods of foreign origin. 3. On the basis of a specific information, Officers of Customs conducted search of the shop of petitioner situated at 597, Hamilton Road, Kashmere Road, Delhi as also at a godown of the said firm at 599, Hamilton Road, Kashmere Gate, Delhi, on the basis of Search Authorization issued by Assistant Commissioner of Customs (Preventive). The search resulted in the recovery of huge stock of electronic goods of foreign origin and the Indian Currency of Rs. 14,10,000/-. The same were seized under Section 110 of the Customs Act, 1962 on the reasons to believe that the same have been imported/acquired/possessed and kept in cu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CBIC Circular No. 984/08/2014-CX dated 16.09.2014. He filed yet another application dated 11.02.2023 for the refund of the seized amount of Rs. 14,10,990/- along with applicable interest. 11. Assistant Commissioner (Refund) vide order dated 23.03.2023, sanctioned refund of Rs. 16,71,146/- {Rs. 9,30,000/- (principal amount) along with Rs. 7,41,146/- (interest amount)} to the petitioner. Later, a Corrigendum dated 10.04.2023 was issued by the Assistant Commissioner (Refund), thereby sanctioning only a refund of Rs. 9,41,954/-, {Rs. 9,30,000/- (principal amount) along with Rs. 11,954/- (interest amount)} to the petitioner. SUBMISSIONS 12. Learned counsel for the petitioner has argued that till date, he has neither received the refund nor the interest. It is submitted that respondent is not adhering to the CBIC Circular despite the clear timelines given therein. It is also submitted that respondent without any statutory or legal authority, passed Corrigendum dated 10.04.2023 and arbitrarily reduced the interest to Rs. 11,954/-. It has also been argued that despite the orders by the Tribunal, seized currency of Rs. 14,10,990/- has also not been released. It is submitted that the pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is reproduced below:- "[27-A. Interest on delayed refunds.-If any duty ordered to be refunded under sub-section (2) of Section 27 to an applicant is not refunded within three months from the date of receipt of application under sub-section (1) of that Section, there shall be paid to that applicant interest at such rate, [not below five percent] and not exceeding thirty percent per annum as is for the time being fixed [by the Central Government by Notification in the Official Gazette] on such duty from the date immediately after the expiry of three months from the date of receipt of such application till the date of refund of such duty. Provided that where any duty, ordered to be refunded under sub-section (2) of Section 27 in respect of an application under sub-section (1) of that section made before the date on which the Finance Bill, 1995 receives the assent of the President, is not refunded within three months from such date, there shall be paid to the applicant interest under this Section from the date immediately after three months from such date, till the date of refund of such duty.]" 17. Section 27-A clearly provides for the payment of interest on the delayed refund ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Section 129-E. It provides as under:- "[129-EE. Interest on delayed refund of amount deposited under Section 129-E.-Where an amount deposited by the appellant under Section 129E is required to be refunded consequent upon the order of the appellate authority, there shall be paid to the appellant interest at such rate, not below five percent, and not exceeding thirty six percent per annum as is for the time being fixed by the Central Government, by notification in the Official Gazette, on such amount from the date of payment of amount till, the date of refund of such amount: Provided that the amount deposited under Section 129E, prior to the commencement of the Finance (No. 2) Act, 2014, shall continue to be governed by the provisions of Section 129EE as it stood before the commencement of the said Act.]" 21. In view of Section 129-EE, interest at such rate not below 5% and not exceeding 36% per annum is payable on the delayed refund of amount deposited under Section 129-E. Circular No. 984/08/2014-CX of Central Board of Excise & Customs dated 16.09.2014, clarifies in Para No. 5.1 that where the appeal is decided in favour of the party/assessee, he shall be entitled to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st on the entire amount of Rs. 9,30,000/- deposited by the petitioner. However, it is also a fact that the seized goods were released provisionally to the petitioner on 11.09.2008 and 12.09.2008 on furnishing a bond and a bank guarantee of Rs. 9,30,000/-. Admittedly, the redemption money and penalty was paid before filing the appeal by getting the bank guarantee encashed vide letter dated 03.12.2009. Admittedly, the Tribunal has set aside the Order-in-Original and granted the consequential benefits to the petitioner. Revenue cannot be permitted to enrich itself at the cost of the petitioner. It may have earned the interest on the redemption and the penalty amount deposited by the petitioner, which amount was ultimately found to be refundable. The question with regard to the grant of interest is no longer res-integra, inasmuch as, in the case of Union of India, through Director of Income Tax Vs. Tata Chemicals Limited, reported in (2014) 6 Supreme Court Cases 335, while dealing with the question of grant of payment of interest on the refund of income tax, it was held as under:- "Providing for payment of interest in case of refund of amounts paid as tax or deemed tax or advance tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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