Principal Commissioner, Customs- New Delhi (Prev) Vs M/s Mahavir Overseas

Order Date – 20 January 2023

Facts –

• The Respondent, M/s Mahavir Overseas is the importer and it was alleged that they were mis-declaring the imported goods as well as undervaluing the goods.
• In the course of investigation, with regard to the Bills of Entry being BOE dated 25.11.2014 and bill of entry dated 24.11.2014, the appellant was made to deposit an amount of Rs. 40 lakhs which was deposited by TR 6 challans dated 18.12.2014 Rs. 30 lakhs and on 19.12.2014 Rs. 10 lakhs.
• After, this deposit, during investigation stage, the goods of aforementioned bills of entry were granted provisional release on 23.12.2014 and 28.12.2014, after taking PD bond. 
• After that no show cause notice was received by the Respondent, they filed refund claim after about six years on 09.10.2020.

Issue –

• Whether the respondent is entitled to claim the refund ?

Order –

• The Tribunal observed that Commissioner (Appeals) have rightly held that the amount remained with the revenue unadjusted by way of pre-deposit. Further, such pre-deposit was made under protest which is writ large on the face of the record.
• The Tribunal allowed cross-objections with directions to the revenue to grant interest @ 6% per annum from the date of deposit till the date of refund.
• The appeal filed by revenue is dismissed.