Custom Duty – Interest on delayed Refund is statutory entitlement under Section 27A of the Customs Act, 1962 – Failure to consider the prayer for interest in appeal – matter remanded

Refund Claims (seven) for refund of additional duty of Rs.29,16,400/- for the period from 2.4.2013 to 30.4.2015.  The refund applications were ultimately allowed in 2019.  However, the Authority did not pass any order on interest and did not grant the benefit of statutory entitlement of Section 27A of the Customs Act on refund of the duty.

HELD that interest on the delayed payment of the refund of duty is the statutory entitlement of the petitioner and necessarily required to be considered while deciding the refund applications.   It clearly appears that although a specific prayer was made before the Commissioner of Appeals, the prayer was not considered.  Even assuming that the petitioner had not made prayer for interest, the fact remains that interest is statutory entitlement.  It is, therefore, necessary to decide the interest claim of the petitioner on the Refund Applications.

Judgment dated 19.3.2024 in W.P.No.773 of 2024 of M/s. Ajay Industrial Corporation Ltd.  Vs. The Assistant Commissioner of Customs, CRC, SAD-I/II/V/VI