Commissioner of Customs Vs Oswal Woolen Mills Ltd (CESTAT Chandigarh)
CESAT Chandigarh held that interest u/s 27(A) of the Customs Act, 1962 is available after expiry of three months from the date of receipt of refund application till the date on which the refund has actually been paid.
Facts- The respondents are engaged in the import of Polyester Blankets/Polyester Mink Blankets made out of 100% Polyester Spun Yarn and Fleece Antipill Blankets etc falling under Tariff Heading 63014000 of the Customs Tariff Act, 1975. The respondents contended that the imported goods did not attract CVD, in as much as, the excise duty on the like articles if manufactured in India is exempt by Notification No. 30/2004-CE dt. 09.07.2004. The respondent submitted letters of protest stating that the Bills of Entry had been prepared at the gateway at www.icegate.gov.in and since the said exemption was not being reflected on the systems, they were making payment of CVD under protest.
Thereafter, the respondent filed the appeals before the Commissioner (Appeals), who upheld the order of the assessing authority by rejecting the appeals filed by them.
The order of the Commissioner (Appeals) was set aside by the CESTAT, Chandigarh. Thereafter, the respondents filed the refund claims. After the decision of the CESTAT, the Department sanctioned the refund claims, but ordered that the same to be transferred to the Consumer Welfare Fund in accordance with the provisions of Section 27(2) of the Customs Act, 1962 on the ground of bar of unjust-enrichment.
Refund was allowed by CESTAT. Thereafter, the respondents again filed the refund claims. The Department sanctioned the refund claims but interest was denied to the respondents on the ground that the matter was sub-judiced before the CESTAT and the refund claims were disposed of within the period of three months of the said order as prescribed under Section 27(A) of the Customs Act, 1962.
Commissioner (Appeals) allowed the appeals of the respondents. Being aggrieved, revenue has preferred the present appeal.
Conclusion- Held that the respondents are entitled to interest as per Section 27(A) of the Customs Act, 1962 at the applicable rate of interest as prescribed vide notification issued under Section 27(A) from time to time after expiry of three months from the date of receipt of refund application till the date on which the refund has actually been paid.
I am of the considered view that there is no infirmity in the impugned order and there is no need of any interference in the impugned order. Hence, I dismiss all five appeals filed by the Revenue by upholding the impugned order.
FULL TEXT OF THE CESTAT CHANDIGARH ORDER
The Revenue has filed these five appeals against the common impugned order dated 05.04.2022 passed by the Commissioner (Appeals), CGST, Ludhiana, whereby the ld. Commissioner (Appeals) has allowed the appeals of the respondents/assessees by setting aside the orders-in-original.
2.1 Since the issue involved in all five appeals is identical and there is a common impugned order, hence I proceed to decide all five appeals by this common order. Details of the refund claims filed by the respondents/assessees are as under:
