H L G Trading Vs Commissioner of Customs (CESTAT Chandigarh)
CESTAT Chandigarh held that interest on refund not eligible if the assessment is finalized within three months as prescribed under Section 18(4) of the Customs Act, 1962. Accordingly, appeal dismissed.
Facts- The appellant imported 100% nylon yarn raw white in yanks stock lot under 23 bills of entry between August 2013 to September 2014. The goods imported were provisionally assessed on account of verification undertaken by the department qua the description, value and availability of Notification No. 30/2004-CE dated 09.07.2004 with respect to the said goods from levy and collection of countervailing duty. The bills of entry were finally assessed, accepting the declared value of description of goods under final assessment orders dated 28.02.2017.
The appellant therefore filed a claim for refund of an amount of Rs.46,50,912/- paid as 20% deposits under the PDA Regulation, 2011. The appellant also made a claim for interest on the said sums. Vide order dated 19.06.2017, the original authority admitted the claim and sanctioned the said sums of Rs.46,51,012/-. However, the claim for interest was rejected. Commissioner (Appeals) rejected the appeal. Being aggrieved, the present appeal is filed.
Conclusion- This issue is no more res integra and this Tribunal in the case of M/s Saraswati Knitwear Pvt Ltd has examined this issue and held that the appellant-assessee is not entitled to interest on refund if the assessment is finalized within three months as prescribed under Section 18(4) of the Customs Act, 1962.
