Q : Assessee paid duty, fine and penalty under protest . On assessee becoming entitled to refund thereof, Tribunal directed Commissioner to pay interest at 12 per cent on “amount of refund .Whether interest on delayed refunds is payable on duty only or on fine and penalty also ?
Interest on delayed refunds would be payable to assessee only on amount of duty and not on refund of fine and penalty
SUPREME COURT OF INDIA
Commissioner of Customs (Port), Kolkata
Coronation Spinning India
CIVIL APPEAL NOS. 1569 TO 1571 OF 2005
MAY 1, 2015
A.K. Panda, Sr. Adv., T.C. Sharma, Ms. Sushma Manchanda and B. Krishna Prasad, Advs. for the Appellant.Himanshu Shekhar, Adv. (NP) for the Respondent.
1. Even on second call nobody appears on behalf of the respondents assessee. We have, therefore, heard the learned counsel for the appellants/Revenue in these appeals.
2. The respondents had deposited the amount of duty and fine and penalty with the Department under protest. Ultimately the issue was decided in favour of the respondents holding that no such duty, fine and penalty was paid. The question of refund of the said amount was thereafter raised and in the impugned order the Tribunal had directed the Commissioner to pay interest to the respondents at the rate of 12% on the amount of refund.
3. The only grievance which is made by the Department in these appeals is that an issue to pay interest only on the amount of duty and not on fine and penalty. We find force in the submission of the appellants. These appeals are accordingly partly allowed holding that interest at the rate of 12% shall be paid to the respondents on the amount of duty and not on fine and penalty. The said amount shall be paid to the respondents within two months.