Professional Update
(Goods and Service Tax Case laws)
D.B. Civil Writ 28919/2023 (Del HC)
Raj Kumar Batra.
vs
Commissioner of Customs (Preventive).
Facts
The petition is seeks direction from the courts regarding the refund the pre deposit of 9,30,000 from the respondent with interest therefore. Also, the petitioner seeks the direction that refund of 14,10,990/- of the cash seized by the custom department along with the applicable interest.
Issue
Whether the custom department has to provide the refund of the pre deposit with the interest ?
Held.
Delhi HC held that section 27A of the Custom Act is applicable only for the delay in the refund of the custom duty.
Section 129E of the Custom Act, specifies the right to appeal and the pre-deposit is a procedural part for it.
Section 129EE of the Custom Act, determine the interest on the refund of the custom duty.
The issue of providing the interest to the pre-deposit is not res-integra. The supreme court in the judgement of tata chemical states that the obligation to refund money received and retained without right implies and carries with it the right to interest.
Therefore, the high court directed the respondent to pay the refund amount along with the 6% interest.
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CA Manoj Garg
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