2016 (12) TMI 1208

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....ppellant is entitle for  interest on delayed sanction  of refund  of SAD  under Notification No. 102/07-Cus DATED 14/9/2007.   Ld. Commissioner(Appeals) denied  the interest referring  to Board Circular  No.6/2008 DATED 28/4/2008  wherein  relevant para reads as under:- "4.3.  With the  extension of time limit and the requirement  to file claims on a monthly basis,  Board feels that the number of refund  claims should be  manageable  for disposal  within the normal  period of three months.  Further, in the absence of specific  provision for payment  of interest  being  made applicable  under the said  notif....

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....; on delayed sanction  of refund. 4.  On the other hand, Shri. Chatru Singh, Ld. Asstt. Commissioner (A.R.) appearing on behalf of the Revenue, reiterates the findings of the impugned order.   He further  submits that  levy of  special  additional duty is provided under Section 3A  of Customs  Act, 1962 therefore  as per the judgment  of Delhi High Court  in case of  Pioneer Silk Mills Pvt. Ltd Vs. Union of India  [1995(80) ELT 507] provision  related to  refund shall not apply to the levy of duty under  Section 3.  In this regard, he also placed reliance  on following cases: (a) Collector  of C. Ex. Ahmedabad Vs. Orient  Fabrics ....

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....e refund, interest would be payable on the amount of refund, in the manner stipulated under Section 27A of the Act. A collective reading of Section 3(8) of the CTA and Sections 27 and 27A of the Act leads to the conclusion that the provisions in the Act concerning refunds and interest on delayed refunds, would equally apply to refund of SAD leviable under Section 3 of the CTA. Circular No.6/2008 to the extent that it seeks to deny a successful applicant for refund of SAD, in terms of Notification No. 102/2007, interest on such refund in terms of Section 27A of the Act, is inconsistent with and ultra vires Section 27A of the Act. 21. Consequently, in the present case, the Department was not justified in denying interest to the Respondent on....