Vedanta Ltd. Vs Commissioner of Customs (Ports) (CESTAT Kolkata)
In the case of Vedanta Ltd. vs. Commissioner of Customs (Ports), the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) Kolkata addressed a prolonged dispute over the refund of export duty. Vedanta, formerly Sesa Goa Ltd., exported iron ore in 2007-2008 and paid export duties at higher rates to avoid delays in clearance. Subsequently, the company sought a refund citing lower applicable rates based on iron content. Despite providing supporting documents in 2009, the case remained unresolved for over a decade due to administrative inaction. The final re-assessment cum refund order issued in September 2023 granted Vedanta a refund of ₹6.93 crore but denied interest, prompting further litigation. CESTAT concluded that the refund should include interest under Section 27A of the Customs Act, 1962, based on precedents such as Ranbaxy and Sandvik Asia. Interest was deemed payable from January 11, 2011, three months after the Commissioner (Appeals) directed rectification, until the refund’s final payment in September 2023. Citing established case law, the tribunal ordered interest at 12% per annum. The tribunal emphasized that the delay of over 15 years necessitated prompt action and directed the authorities to pay the interest within eight weeks. This decision highlights the judiciary’s role in ensuring accountability and timely resolution in matters involving public authorities.
