2026-VIL-722-CESTAT-DEL-CU
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CUSTOMS CESTAT Cases

Customs – Interest on refund of amount deposit pursuant to Supreme Court order - Applicable interest - The appellant had deposited an amount with the Department pursuant to the directions contained in the interim order of the Supreme Court subject to the condition that it will be refunded to the appellant with applicable interest in the event the appeal filed by the appellant was allowed. The Supreme Court subsequently allowed the appeal filed by the appellant – Appellant seeking interest at the rate of 6% per annum on the amount deposited pursuant to the directions issued by the Supreme Court - Whether the refund of amount deposited pursuant to Supreme Court order and the interest thereon would be governed by the provisions of the Customs Act, particularly Sections 27 and 27A, or whether the refund and interest would be in accordance with the directions contained in the interim order of the Supreme Court – HELD - The appellant was permitted to deposit the amount subject to the condition that the said amount will be refunded to the appellant forthwith with applicable interest in the event of the appeal being allowed. The appellant was, therefore, not required to file any application under section 27 of the Customs Act for refund of the amount and interest - The refund of the amount and the interest thereon would not be governed by the provisions of the Customs Act, particularly Sections 27 and 27A - Any deposit made pursuant to the directions of a Court order would be governed by the conditions imposed in that order and not by the provisions of the statute - The Supreme Court's interim order clearly directed that the amount deposited by the appellant shall be refunded forthwith with applicable interest in the event the appeal is allowed. The Department was bound to comply with this direction of the Supreme Court and the provisions of the Customs Act were not applicable – Further, the amount deposited by the appellant pursuant to the Supreme Court's order could not be treated as 'duty' under the Customs Act, and thus the provisions of Sections 27 and 27A would not apply - The Department is directed to forthwith pay interest to the appellant at the rate of 6% per annum from the date of deposit till the date of payment – The appeal is allowed
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GSTAT Appeal filed wrongly...
By CA Vivek Jalan

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