Interest on customs refund runs from the appellate relief order, not from the date fine and penalty were paid.

Interest on refund of customs fine and penalty under Section 27A was treated as running only from the appellate relief order, not from the date the amounts were originally paid. The review challenged the earlier direction that had awarded interest from the payment date as contrary to the statutory scheme, and the accepted position was that interest accrues only from the date of the CEGAT order granting relief. Accordingly, interest on the refunded amount was payable only from 17 May 2002, the date of that order.

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Issues: Whether interest on refund of fine and penalty under Section 27A of the Customs Act was payable from the date of payment or only from the date of the CEGAT order.

Analysis: The review was sought on the ground that the earlier direction awarding interest from the date of payment was contrary to Section 27A. The statutory position accepted by both sides was that interest could run only from the date of the appellate order granting relief, not from the date on which the fine and penalty had been paid.

Conclusion: Interest on the refunded amount was held payable only from 17 May 2002, being the date of the CEGAT order, and not from the date of payment.

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