Bombay HC holds Interest Cannot Be Levied on Invalid Customs Repayment

Leben Laboratories had claimed customs-duty exemption on imports under Advance Authorisation and later repaid the additional customs duty because it had also claimed IGST refund on exports. While making that repayment, it paid about ₹43 lakh as interest. 

Bombay HC, relying on Mahindra & Mahindra, A.R. Sulphonates and the Supreme Court's Goodluck India, held that there was no legal obligation to make the repayment itself once Rule 96(10) was deemed omitted from inception, and therefore no question of charging interest on that repayment.