Interest on delayed drawback is payable under the Customs Act at the rate linked to Section 27A notifications.

Interest is payable on delayed sanction of drawback when the drawback is not released within the statutory period. Section 75A of the Customs Act, 1962 applies where drawback remains unpaid beyond two months from the date of claim, and the applicable rate is determined by reference to Section 27A and the relevant notifications issued under that provision. The appellant was therefore entitled to interest on the delayed drawback, and the Commissioner was directed to quantify the amount in accordance with the statutory scheme and notification-based rate.

---

---

Issues: Whether the appellant was entitled to interest on delayed payment of drawback, and at what rate such interest was payable.

Analysis: The claim for interest arose after the drawback sanctioned earlier by the Tribunal was not paid within the statutory period. Section 75A of the Customs Act, 1962 provides for interest where drawback is not paid within two months from the date of filing of the claim, and the rate is linked to Section 27A of the Customs Act, 1962 and the notifications issued thereunder.

Conclusion: The appellant was held entitled to interest on the delayed drawback, and the Commissioner was directed to quantify the interest in accordance with Section 75A read with Section 27A of the Customs Act, 1962 and the applicable notification-based rate.

---