2017 (9) TMI 400

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....toms Tariff Heading 2834.21 and imposed customs duty which was paid under protest and the goods cleared. Subsequently, the respondent filed claim for refund of duty paid and the same was granted by the original authority. After the principal amount of refund was refunded to the respondent, the claim was made for payment of interest on the principal amount on the ground that the refund was paid after delay. The claim for payment of interest of Rs. 76,22,962/- was rejected by the original authority. When the issue was carried to the Commissioner (Appeal), he passed the impugned order in which he sanctioned the payment of interest in terms of Section 27A of the Customs Act, 1962 from three months after the date of receipt of refund application....

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....it Petition. The issue of payment of customs duty can come to be ultimately settled in favour of the respondent. Finally, refund of the customs duty, originally paid was sanctioned. However, the subject matter in the present dispute is limited to claim for interest made by the respondent. It is seen from the record that the respondent has made such claim for interest only after receiving the main refund amount. 6. The statutory provision of payment of refund on delayed refunds under Section 27A which was inserted w.e.f. 26/5/1995 and the same is reproduced below : "SECTION 27A. Interest on delayed refunds. - If any duty ordered to be refunded under sub-section (2) of section 27 to an applicant is not refunded within three months from the ....