By TIOL News Service

CHENNAI, AUG 07, 2013: THIS is sheer perseverance, as this sequence of events would show!

Sometime in 1992 or before : The appellants filed their Bill of Entry in respects of their imports along with the documents to show that the declared price was in terms of the transaction value. However, the said valuation was not accepted by the Authorities. With the result, the assessees paid the enhanced value under protest and the goods were cleared. Thereafter the assessees preferred appeals before the Collector of Customs (Appeals).

30.09.1992: Collector of Customs (Appeals) allowed the appeals.

01.08.1997: On appeal by Revenue, Tribunal set aside the order of the first Appellate Authority and remanded the matter back to the original Authority for de novo consideration.

02.02.1998: On a writ petition by the assessee, the High Court directed the Tribunal to decide the case afresh.

17.03.1999: Tribunal allowed the assessees' claim, thereby rejected the appeals filed by the Revenue. With the result, the order passed by the Collector (Appeals) dated 30.09.1992 was confirmed accepting the value declared by the assessees on the imports made.

12.03.1993: Assessees made applications to Assistant Collector (Customs). claiming refund of the excess duty of Rs.7,59,786 /- and Rs.1,95,138 /- with interest at 20% per annum from the date of deposit.

16.12.1994: Assistant Collector (Customs) rejected the refund claim and directed the amount to be taken to the Consumer Welfare Fund.

06.06.1995: Commissioner (Appeals) partially refunded a sum of Rs.4 ,30,388 /- out of Rs.7,59,785 /- in respect of M/ s.Shakun Overseas Ltd. and refunded the entire amount of Rs.1,95,139 /- in respect of M/ s.Siddarth Internationals.

27.01.1995: On appeal by the assessees, the Tribunal remanded the matter back to the Appellate Authority.

12.08.1999: The Commissioner of Customs (Appeals) dismissed all the appeals.

28.08.2001: On further appeals by the assessees, the Tribunal allowed the appeals thereby setting aside the order of the Commissioner of Customs (Appeals).

24.10.2001: Based on the order thus passed by the Tribunal, the assessees, once again, preferred petitions on claiming refund with interest at the rate of 15% from the date of deposit till the date of refund.

12.03.2002: Deputy Commissioner of Customs passed an order on 12.3.2002 granting refund of duty payment alone without any interest.

15.03.2002: Aggrieved by this, the assessees wrote a letter, wherein they claimed that the duty payment being under protest, interest at 15% from the date of payment of duty was to be made.

26.04.2002: Reiterated the prayer for interest.

11.12.2006: Miscellaneous Petitions before the CESTAT, by the assessees that interest was payable, the Tribunal disposed of the applications directing the Revenue to pay interest on the duty amount from 22.1.2002 to 12.3.2002. The relevant date for computation of interest on the duty refunded to the assessee was held to be the date immediately after expiry of three months from the date of receipt of the relevant final order of the Tribunal; the payment of interest could be only from 22.1.2002 to 12.2002 and not prior to that period.

The assessees are before the High Court against the order of the Tribunal.

The High Court held: the assessees would be entitled to interest on the expiry of three months from the date of receipt of the application to the date of refund of such duty and on no account they would be entitled to interest on the amount paid under protest from the date of payment, as had been claimed by them. The refund claim could be validly held to be made only on the disposal of the appeals by the Tribunal and not any date prior to that, which means, the date on which the order was passed by Collector of Customs (Appeals) would not be of relevance for the purpose of limitation.

The appeals are dismissed.

(See 2013-TIOL-609-HC-MAD-CUS)