Customs Must Refund Bank Guarantee Wrongly Encashed During Appeal: CESTAT Mumbai

Oswal Industries Limited Vs Commissioner of Customs (Import) (CESTAT Mumbai) The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai, decided the appeal filed by Oswal Industries Limited against the Commissioner of Customs (Import), Mumbai Zone-I concerning the encashment of a bank guarantee during the pendency of an appeal and the subsequent rejection of refund on the ground of limitation under Section 27 of the Customs Act, 1962. The dispute centered on whether a bank guarantee encashed by the department during the pendency of appeal could be treated as “payment of duty” ...