ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 25.04.2025
CESTAT Mumbai Orders Interest on Refund of Seized Travellerβs Cheques
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai Bench ruled in favor of M/s Sohail Maklai Entertainment Pvt. Ltd., directing the Customs Department to pay interest on the refund of βΉ47.86 lakhs, which was encashed from 106 travellerβs cheques seized back in 2006.
Case Background:
- On 19.10.2006, Customs officials at CSI Airport, Mumbai seized 106 travellerβs cheques from a passenger.
- The cheques, amounting to USD $1,07,642 (equivalent to βΉ47,86,334), were deposited in the State Bank of India.
- After prolonged litigation, redemption fine and penalties totaling βΉ10.01 lakhs were deducted.
- The remaining βΉ41.85 lakhs was refunded, but no interest was paid on the retained amount.
- The company sought interest on the refunded amount and alternatively, foreign exchange rate-adjusted compensation.
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 Mumbai
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