Customs must pay 6% interest on delayed duty refunds beyond three months after application acknowledgment. Conditions apply.
Customs authorities must process refund claims promptly upon receiving complete applications. If a refund is not issued within three months, an interest rate of 6% is payable from the end of that period until the refund is made. The application date is the date acknowledged by the Customs officer. If a higher authority, such as the Commissioner (Appeals) or a court, orders a refund, that order is treated as the basis for interest calculation. Interest is applicable only on delayed refunds of Customs duty, not on deposits like project imports or security for provisional goods release.