Order Date – 12 September 2023

Parties: Videocon Industries Ltd Vs C.C.E. & S.T.-Vadodara-ii

Facts – 

• The Appellant, Videocon Industries Ltd, had paid the anti-dumping duty, subsequently, they have challenged the imposition of anti-dumping duty wherein they succeeded. vide CEGAT order dated 15.11.2002. Thereafter, the appellant filed an application for refund on 22.04.2003 in respect of anti-dumping duty along with interest.
• The Learned Commissioner (Appeals) rejected the claim of interest on refund already sanctioned to the appellant on the ground that the appellant was granted the refund within three months from the order dated 13.04.2012 passed by Commissioner (Appeals) allowing the refund therefore, no interest is payable.

Issue –

• Whether the appellant is entitled to interest on refund?

Order –

• The Tribunal observed that the application for refund which had arisen from the CEGAT’s order dated 15.11.2002 was filed on 22.04.2003. The said refund though sanctioned but credited into Consumer welfare fund thereafter from 22.04.2003 till 25.06.2012 refund was not granted as the matter of refund itself was under litigation before the High Court, Commissioner (Appeals) and finally the refund was granted to the appellant only on 25.06.2012.
• Therefore, in the clear provision under Section 27 A and the landmark judgment of Hon’ble Supreme Court in the case of Ranbaxy Laboratories Ltd, the appellant is entitled for interest on the amount already refunded for the period from 22.07.2003 (three months after the date of application) till 25.06.2012 (date of grant of refund).
• Hence it was held that the appellant is legally entitled for interest on the refund granted to them after three months from the date of the application i.e. 22.07.2003 till the grant of refund i.e. 25.06.2012 as per the rate of interest as prescribed under the Customs Act, 1962.