Delayed customs refund carries statutory interest from expiry of the refund period, with payment directions issued for any unpaid amount.

Delayed customs refund under section 27A attracted statutory interest where the refund was not granted within three months from receipt of the refund application. The text states that the delay was unjustified and that interest became payable at the statutory rate from the expiry of the three-month period until actual payment. It also records a direction to release the duty component of the refund within the stipulated time if unpaid, with interest to be paid within one month.

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Issues: Whether the applicant was entitled to interest on the delayed refund of customs duty under section 27A of the Customs Act, 1962, and whether directions were required for payment of the refund amount.

Analysis: The refund ought to have been granted within three months from the date of receipt of the refund application. Since the amount was not paid within that period, the delay was held to be unjustified. The applicant was therefore held entitled to interest at the statutory rate under section 27A from the expiry of three months from the date of the refund application until the date of actual payment. A direction was also issued for payment of the duty portion of the refund within the stipulated time if it had not already been paid.

Conclusion: The applicant was held entitled to statutory interest on the delayed refund, and the refund amount was directed to be paid within one week if unpaid, with interest payable within one month.

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