Court awards interest on duty refund under Customs Act, 1962, from application date, not final order date.

The Court granted the petitioner's claim for interest on duty refund under Sections 27 and 27A of the Customs Act, 1962. The Court ruled that interest should accrue from 90 days after the application date, rejecting the respondents' argument for interest from the final order date. Drawing on the Central Excise Act, the Court held that interest on delayed refunds starts accruing after three months from the application date. The judgment favored the petitioner, directing the respondents to pay interest from the application date until payment, with no costs imposed on either party.

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Issues:
1. Claim for interest on duty refund.
2. Interpretation of Sections 27 and 27A of the Customs Act, 1962.
3. Application of interest on delayed refunds.
4. Comparison with similar provisions in the Central Excise Act, 1944.

Analysis:

1. The petitioner sought a writ of certiorari to challenge the rejection of its claim for interest on duty refund. The petitioner had imported goods, paid duty, and filed refund applications. The Assistant Commissioner initially rejected the refund due to undue enrichment, but subsequent appeals favored the petitioner, leading to the refund sanction.

2. The key issue revolved around the interpretation of Sections 27 and 27A of the Customs Act, 1962. Section 27 allows refund claims, while Section 27A deals with interest on delayed refunds. The petitioner argued for interest from the date of the application, while the respondents contended interest should start from the final order date.

3. The Court analyzed Section 27A in detail, emphasizing that interest should accrue from 90 days after the application date, as per the plain reading and intent of the provision. The Court rejected the respondents' reliance on the explanation and held that interest should be paid based on the application date, not the final order date.

4. Drawing parallels with the Central Excise Act, the Court referred to a Supreme Court judgment highlighting that interest on delayed refunds becomes payable after three months from the application date, not the refund order date. This comparison supported the petitioner's claim for interest from the application date under Section 27(1).

5. The Court concluded that the petitioner was entitled to interest from 90 days after the application date until payment. The judgment aligned with the petitioner's position, emphasizing that the revenue did not suffer losses and must pay interest as mandated by Section 27A. The respondents were directed to pay interest by a specified date, with no costs imposed on either party.

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