Order Date – 14 June 2022

Facts:

• The Petitioner, M/s Indraprasth Traders, presented 14 shipping bills to claim duty drawback at ICD Mandideep on 18.9.2010 for export goods to UAE.
• A Show Cause notice was issued under Section 113 by the Respondent about confiscation of goods valued at Rs.2,97,66,478/- and imposing penalty under Section 114.The goods were released on execution of bank guarantee and bond of Rs. 30 lakhs.
• Aggrieved the petitioner filed for appeal, in which the order was being set aside by Cestat and hence the petitioners was entitled for the refund of Rs.30 Lakhs along with interest from the date of deposit.
• Thereafter, show cause notice was issued and the refund claim made by the petitioner was rejected on the ground that it is barred by limitation as well as on merits. Questioning the same, the petition has been filed.

issue:

• Whether the Respondents is correct in denying the amounts due to the petitioners along with interest?

order:

• The High Court observed that in terms of the Cestat order, the Respondents were duty bound to return the amount of Rs.30 Lakhs. If the contention of the respondents is to be accepted, then the view of the respondents would amount to sitting in appeal over the order of the CESTAT.
• Further, section 27-A of the Customs Act deals with refund of any claim which is liable to attract interest at the minimum of 5% and the maximum of 30%. It was observed that the Parliament has enacted this law to ensure that the refunds should carry interest. 
• In view of the same the respondents were directed to pay interest at the rate of 10% per annum from the date of the Cestat order till the date the payments are made to the petitioner.