ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 13.06.2025
CESTAT Chandigarh- Customs Must Pay Interest on Late Refunds
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chandigarh has delivered a pivotal ruling in favor of leading textile exporters M/s Oswal Woolen Mills Ltd. and Monte Carlo Fashions Ltd., dismissing five appeals filed by the Commissioner of Customs, Ludhiana. The matter involved claims for interest on delayed refund of customs duties wrongly paid on imports of polyester blankets from China under protest.
The Tribunal upheld that the interest is payable from three months after the date of the original refund application, and not from the date of a later tribunal or appellate decision, setting a clear precedent.
Case Background
- The respondents had imported polyester mink blankets (CTH 63014000) and paid Countervailing Duty (CVD) under protest.
- They argued that CVD was not leviable as such domestic products were exempt under Central Excise Notification No. 30/2004-CE dated 09.07.2004.
- Though customs duty was paid at the time of import, refund claims were filed following a favorable CESTAT order dated 02.04.2019.
- The department later sanctioned the refund but denied interest, contending it was processed within three months of the tribunal’s decision.
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 Chandigarh
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