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The Revenue had filed an Appeal against an order of the Commissioner (Appeals), which had been reversed by the Ahmedabad Tribunal. The Tribunal had also held that held that refund of pre-deposit was warranted and interest liability arises from the date of the order of the Tribunal. Aggrieved, the Revenue had preferred an Appeal before the HC, who also ruled against the Revenue and held that the interest liability arises from the date of the order of the tribunal and liability to pay interest would arise from the date of the order of the Tribunal.
Thereafter, the Commissioner (A) had passed an order vide which interest on refund was directed to be calculated from expiry of three months after passing of the Tribunal’s final order at 6% p.a. and the Appellant’s demand of interest on interest was denied. Aggrieved, the Appellant preferred an Appeal before the Tribunal.
The Tribunal held that in view of the concurrent orders of Tribunal as well as High Court, since it was held that the interest arises from the date of order and this finding was not challenged by the revenue, it attains finality. Therefore, it was held that the appellant was entitled for interest from the date of order of the tribunal and not from expiry of three months from the date of order.
As regards the demand for interest on interest, the Tribunal observed that there is no provision under the Customs Act to grant the same. Therefore, the Tribunal being a creature under Statute, cannot decide anything beyond the provisions of the law.
Bochasanwasi Shri Aksharpurushottam Swaminarayan Sansth [Customs Appeal No.63 of 2011]
The information provided in this update is intended for informational purposes only and does not constitute legal opinion or advice. Readers are requested to seek formal legal advice prior to acting upon any of the information provided herein. This update is not intended to address the circumstances of any particular individual or corporate body. There can be no assurance that the judicial/ quasi judicial authorities may not take a position contrary to the views mentioned hereinrra quis.
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