2026-VIL-1718-CESTAT-AHM-CU
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CUSTOMS CESTAT Cases

Customs – Binding effect of High Court decision during pendency of Larger Bench reference before Tribunal - Appellant, engaged in manufacture, claimed refund under Section 27(1)(a) of the Customs Act, 1962 of interest paid on surrendering the IGST exemption benefit availed under Advance Authorisation Scheme - Matter was referred to Larger Bench due to conflicting Tribunal views on whether delayed payment of IGST attracts interest, without the referring bench having the benefit of the later decision of the Bombay High Court on the same issue - Whether the Tribunal should await the decision of Larger Bench or follow the decision of the High Court, which became available after the reference was made - HELD - The decision of the High Court touches upon and covers the same issue which was referred to the Larger Bench, though it was not available when the reference was made. The Larger Bench decision is still awaited. The ruling of the higher authority being available, the same shall prevail over any decision of the Tribunal. The reference has therefore lost its relevance in view of the later ruling of the High Court, and it is proper to follow the same as per judicial discipline - The Tribunal follows the decision of the High Court and does not await the Larger Bench decision - Customs – Interest on delayed payment of IGST on surrender of Advance Authorisation benefit - Appellant surrendered the benefit of IGST exemption availed under Notification No. 79/2017-Cus and paid the IGST along with interest for the period from July 2017 to March 2020, then claimed refund of the interest paid - Whether interest is leviable on delayed payment of IGST for the period prior to the legislative amendment, when there was no specific provision in the statute for such interest - HELD - The Tribunal is concerned with the period prior to the date of amendment, when no specific provision existed in the statute regarding interest on delayed payment of IGST. The High Court, on the same issue, has taken the view that no interest could be levied. The said decision clearly applies to the matter in hand and is followed as per judicial discipline. The impugned order is not sustainable in relation to the legal proposition - The appeals are allowed with consequential relief - Customs – Limitation for refund of interest under Section 27 of the Customs Act, 1962 - Appellant claimed refund of interest paid on delayed payment of IGST on surrender of Advance Authorisation benefit - Whether the limitation period of two years applies to the refund claim - HELD - The limitation of two years will not apply, as it is not a case of refund of duty but of deposit. The ruling of the High Court of Gujarat holding that the limitation under Section 27 does not apply to such deposits, which view has also been upheld subsequently, is applicable. The impugned order cannot be sustained on the point of limitation as well - The appeals are allowed with consequential relief.
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