Order Date – 13 September 2023

Parties: M/s Saraswati Knitwear Pvt. Ltd. Vs Commissioner of Customs, Ludhiana

Facts –

• The Appellant, M/s Saraswati Knitwear Pvt. Ltd. had filed 05 Bills of Entry on 09.06.2011 for clearance of 100% PCT Polyester Spun NE 30/1, Yarn Raw White on Cones falling under CTH 55094190.
• The value declared by the appellant were provisionally assessed by the department and the duty so assessed was paid by the Appellant vide various challans dated 29.11.2011 & 30.11.2011. Being aggrieved with the provisional assessment, the appeal filed by the appellant, the value were finalized on 29.12.2021 and in pursuance to the final assessment refund was sanctioned to the appellant vide OIO dated 14.03.2022.
• The Commissioner has rejected interest on delayed refund.

Issue –

• Whether the appellant entitled to interest on delayed refund?

Order –

• The Tribunal observed that the appellant was provisionally assessed under Section 18 of the Customs Act. In the decision of CCE vs. IOCL 2012 (282) E.L.T368 (Del) wherein it has been held by the Hon’ble Delhi High Court that "in the first situation the assessee has paid provisional duty which gets reduced on final assessment. The assessee, therefore, becomes entitled to refund which is payable in terms of Rule 9B of the Excise Act [(sic) Rules], 1944 or Section 18 of the Act.”
• Further, the appellant is entitled to interest if the refund is payable after the expiry of 3 months from the date of final assessment as per Section 18 (4) of the Customs Act whereas in the present case the refund was granted within 3 months as prescribed under Section 18 (4) of the Act.
• It was held that the appellant is not entitled to any interest in view of the statutory provisions and the appeal is dismissed.