ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 08.05.2025
CESTAT Mumbai- Customs Department directed to pay interest on pre-deposit as per Section 129EE
The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Mumbai Bench ruled in favor of Appellant, directing the Customs Department to pay interest on the delayed refund of pre-deposit. The case pertains to a refund claim made nearly 13 years after a partial success in appeal, where the interest component was denied by the lower authorities.
Case Background:
- Appellant: Appellant, Mumbai
- Original Penalty: ₹5,00,000 for alleged involvement in misuse of a duty-free license
- Pre-Deposit Made: ₹2,50,000 under Section 129E of the Customs Act, 1962
- Appeal Outcome (2006): Penalty reduced to ₹1,00,000
- Refund Claim Filed: December 2006 for balance ₹1,50,000
- Refund Sanctioned: March 2019 — without interest
- Appeal Filed for Interest: Rejected in 2021 by Commissioner (Appeals)
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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