HC asks customs to pay Rs 2.67cr to Honda Siel

The Delhi High Court has directed the Customs Department to refund Rs 2.67 crore to Honda Siel Cars India paid by the auto major as excess duty.

The court also asked the government to start departmental proceedings against Custom Commissioner (Refund) and Assistant Commissioner (Refund) among others for not refunding the excess duty levied on car company.

"Prima facie, it appears that appropriate disciplinary action should be initiated against the concerned defaulting officers," a Bench comprising Justice Vikramjit Sen and Justice S Murlidhar said.

"Additional liability incurred by the department should be recovered from the concerned officers if they fail to furnish a plausible defence," the bench said. While allowing the application of the company for refund, the court also imposed a fine of Rs 25,000 on the central government.

The fine is to be deposited with the Prime Minister's Relief Fund within four weeks. The order came on a petition filed by the Commissioner of Customs (Import and General) seeking quashing of the order of Settlement Commissioner, Delhi, which had decided in favour of the company and fixed a total duty liability of Rs 32.63 lakh.

The company, which had earlier deposited Rs 3 crore during the investigation, contended that the excess amount was not refunded despite several applications to authorities.

The court also directed the central government to file a report furnishing details of the action initiated against the officers.