CIR NO.750/66/2003-CX, DT. 26/09/2003
- Document type
- Circular
- Reference no.
- J
- Dated
Award of Interest by the Tribunal
Award of Interest by the Tribunal
Appeal of the party as well as of the Department have been decided by the Tribunal vide their above order. While dismissing the appeal of the party, Tribunal has dismissed the appeal of the Department also, inter-alia holding that the Supreme Court"s judgement does not lay down any ratio generally applicable and the order was obviously passed in excercise of powers conferred on it by Article 142 of the Constitution; that the Tribunal being a creature of Statute, the excercise of its functions cannot go beyond the limits of Statute and that in the absence of any provision in the Customs Act, 1962 at the relevant time, for the levy of interest, they do not have powers to order payment of interest by the importer.
In this regard, it may kindly be recalled that in some cases of refund of pre- deposits, Tribunal has in the past ordered for payment of interest also by the Department despite their being no specific provision in the Statute. In some such cases, alleals have been filed before the Hon"ble Supreme Court. It is possible that in some similar cases Reference Applications/ Appeals may have been filed by the Commissionerates before the jurisdictional High Courts and some similar cases may also be coming up for hearing before the Tribunal. It is therefore, requested that whenever any such case involving claim for interest comes up for hearing before the Tribunal or the Courts, where is no specific provision in the law for payment of interest, the said judgment of the Tribunal may be cited to defend the case of the Department.
It is therefore, requested that this judgement may please be brought to the notice of all the Commissioners under your charge for necessary action at their end. CDR may kindly bring this judgment to the notice of all the Joint CDRs / SDRs / JDRs for defending such cases before the tribunal.
(Sungita Sharma)
Director (Review)