9.5 Year Delay In SAD Refund: Bombay HC slaps 15k costs on Customs Dept, directs Payment of 6% Interest per annum

The Bombay High Court recently imposed a cost of Rs.15,000 on the Deputy Commissioner of Customs, CRC-I, and directed the Customs department to pay interest at the rate of 6% per annum on the delayed refund of Special Additional Duty (SAD). The case involved a 9.5-year delay in processing the refund, which the court deemed unreasonable. The petitioner had initially filed a writ petition, leading to the court’s directive for the Customs department to determine the interest payable. The court’s decision underscores the importance of timely refunds and accountability within the Customs department. The ruling also highlights the legal recourse available to taxpayers facing undue delays in receiving refunds. The court’s order aims to ensure that taxpayers are compensated for the financial impact of such delays and to encourage more efficient processing of refund claims by the Customs department.