Micromax Entitled To Interest On Delayed Customs Duty Refunds: Delhi High Court Dismisses Department's Appeals

The Delhi High Court has dismissed four appeals filed by the Customs Department challenging the grant of statutory interest to Micromax Informatics Limited on delayed customs duty refunds.

The Division Bench of Justices Avneesh Jhingan and Shail Jain held that Micromax was entitled to statutory interest on the refund amounts, following CETSTA 's decision that the company was entitled to the principal refund amounts.

The Court observed that the Customs Department's challenge no longer survived in view of the subsequent development, as the Tribunal's decision granting the refunds had already been upheld by the High Court.

For context, Micromax had imported cellular phones and mobile parts during the relevant period and paid countervailing duty (CVD) on the imported goods.

Following the Supreme Court's decision in SRF Ltd. v. Commissioner of Customs, Chennai, which held that CVD was not payable on the goods in question, Micromax applied for a refund of the duty paid.

The refund claims were initially sanctioned, along with interest. However, the Customs Department challenged the grant of interest before the Commissioner of Customs (Appeals), who set aside the sanction of interest.

Micromax subsequently approached CESTAT, which set aside the appellate authority's order and held that the company was entitled to statutory interest on the refund amounts.

The Customs Department then approached the High Court, contending that Micromax was not entitled to interest since the principal refund amounts had been directed to be credited to the Consumer Welfare Fund.

The High Court noted that the issue concerning Micromax's entitlement to the principal refund amounts had already been decided in its favour.

It observed that the Tribunal's order granting the refund had been upheld by the High Court in a separate order dated October 27, 2026.

"The natural consequence is that the statutory interest on the amount of refund due has to be paid," it said.

The Court further observed that the Customs Department's contention regarding the denial of interest no longer survived in view of the subsequent development.

As such, the Court dismissed the appeals.

For Appellant: Advocates Aditya Singla, SSC, CBIC with Mr. Nehaol Sri L.V., Advs.

For Respondent: Senior Advocate Balbir Singh, with Advocates Pranav Sarthi,  Ayush Raj,  Disha,  Vedant Kohli, Vinayak, Prachi Dhingra, Utkarsh Vatsa & Udit Bajpai