Orissa HC Orders Interest Payment for Delayed Customs Refund to Vedanta

The Orissa High Court ruled that the Customs Department must pay Vedanta, a mining company, 6% interest on a delayed customs refund.

The company overpaid customs duty, but the refund was significantly delayed, taking nearly 14 years to finalize.

The court agreed with Vedanta and stated that the delay was "inordinate and unexplained".

It rejected the Customs Department’s argument that it lacked jurisdiction to award interest, but reduced the interest rate from 12% to 6% per annum.

This ruling emphasizes that the tax department cannot exploit legal loopholes to avoid paying interest on delayed refunds.