Berger Painst India Limited Vs Commissioner of Customs (CESTAT Kolkata)
The appeal was filed by Berger Paints India Limited challenging the grant of interest at 6% on the delayed refund of an amount deposited during the course of investigation. The appellant sought interest at 12% on the refunded amount.
The appellant had imported mixed xylene isomers between 2011 and 2014, classifying the goods under Customs Tariff Heading 2902.44.00. The goods were purchased on high seas, warehoused after assessment of warehousing bills of entry, and subsequently cleared for home consumption upon filing ex-bond bills of entry and payment of duty. The original assessments were not challenged.
Subsequently, the Directorate of Revenue Intelligence (DRI), Delhi investigated the classification of xylene isomers and took the view that the goods were correctly classifiable under Customs Tariff Heading 2707, resulting in a differential duty demand of ₹7,44,493. Pending investigation, the appellant deposited the amount under protest in 2014. On 25.10.2017, the adjudicating authority confirmed the demand and appropriated the deposited amount towards duty.
The appellant challenged the demand before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), which, by order dated 30.01.2025, allowed the appeal and set aside the demand confirmation order. The Department’s appeal against that order was dismissed by the Supreme Court on 17.09.2025. Following the finality of the proceedings, the appellant sought refund of the amount deposited during investigation. While refund was sanctioned, interest was granted at 6%. The appellant challenged only the rate of interest, seeking 12% interest on the delayed refund.
