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of <h1>Appellant's Interest Rate Discrepancy Resolved: Correct Rates Upheld</h1> <h3>M/s. Asarwa Mills Versus Commissioner of Customs(Export), Mumbai</h3> M/s. Asarwa Mills Versus Commissioner of Customs(Export), Mumbai - TMI Issues:- Appellant seeking refund of interest on the refund amount at different rates- Discrepancy in the rate of interest applied by the department and claimed by the appellant- Interpretation of relevant Notifications regarding the rate of interest on refund amountsAnalysis:1. The appellant applied to the department for a refund of interest on the refund amount at the prevailing rate during the period in question. The department sanctioned a refund of Rs. 2,64,649, and interest on this amount was paid from 1.5.2001 to 26.7.2006 totaling Rs. 98,712. The appellant appealed for a higher rate of interest, citing Notification No.36/2000-Cus(NT) dated 12.5.2000 which was later amended by Notification No.21/2001-Cus(NT) dated 11.5.2001 and further by Notification No.75/2003-Cus dated 12.9.2003. The Commissioner (Appeals) rejected the appeal, upholding the 6% per annum rate under Notification No.75/2003-Cus. The appellant contended that the rate should be 15% pa up to 10.5.2001, 9% pa from 11.5.2001 to 11.9.2003, and as per Notification No.75/03 from 12.9.2003 onwards.2. During the hearing, there was no representation from the appellant's side, and the case was decided based on the records. The Judicial Member reiterated the lower authorities' findings, leading to a review of the case records by the Presiding Officer.3. Upon reviewing the case records, it was determined that the interest claimed on the refund amount was for the period from 1.5.01 to 26.7.06. The Presiding Officer concluded that the rate of interest specified in Notification No. 75/03 could not be applied retrospectively. Accordingly, the appellant was entitled to interest at 15% pa from 1.5.01 to 10.5.01 as per Notification No. 36/2000, at 9% pa from 11.5.01 to 11.9.03 based on Notification No.21/2001, and as per Notification No.75/03 from 12.9.03 onwards.4. The appeal was allowed with consequential relief, if any, as pronounced in court. The judgment clarified the applicable rates of interest on the refund amount based on the relevant Notifications, ensuring the appellant received the appropriate interest rates for the specified periods, thereby resolving the discrepancy in the interest rates claimed and sanctioned by the department.
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