ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 18.07.2025
CESTAT Kolkata Orders 12% Interest on βΉ50 Lakh Refund to Exporter
In a significant pro-importer decision, the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Kolkata, in the case of M/s Alliance International v. Commissioner of Customs (Port), Kolkata [Final Order No. 76921/2025 dated 15.07.2025], has upheld the right of the appellant to receive interest at 12% per annum on a pre-deposit of βΉ50 lakh made during the investigation stage. This ruling reinforces the jurisprudence that interest must be paid on pre-deposits when the same are refunded post-adjudication.
Case Background
- Appellant: M/s Alliance International, Chandigarh
- Respondent: Commissioner of Customs (Port), Kolkata
- Issue: Denial of interest on βΉ50 lakh refunded post-investigation
- Relevant Period: Exports made between July 2016 β August 2020
- Controversy: Alleged misdeclaration of exported goods as refractory mortar instead of chrome ore concentrateβa restricted item liable to 30% export duty
During the course of the investigation initiated by the Directorate of Revenue Intelligence (DRI), the appellant was compelled to deposit βΉ50,00,000 on 16.10.2020. Eventually, the adjudicating authority, vide order dated 31.01.2023, ruled in favour of the appellant and directed refund of the deposit.
This Article has been written by Shri Ravi Shekhar Jha, Advocate Delhi High Court based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.
Source: CESTAT Kolkata
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