2019 (5) TMI 881

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...., challenging the orders of the CESTAT directing payment of interest on the refund already ordered. 2. Heard Mr. B.Narasimha Sarma, learned Senior Standing Counsel appearing for the Revenue, at whose instance four appeals are filed and Mr. Karan Talwar, learned counsel appearing for the assessee who is the respondent in the appeals and the petitioner in the writ petitions. 3. The petitioner is an importer of Timber Logs classified under Tariff Heading No.4403 of the first Schedule to the Customs Tariff Act, 1975. The petitioner claimed refund of the Special Additional Duty paid on the import of Timber Logs in accordance with Notification No.102/2007 dated 14.09.2007 and made '11' refund applications to the total tune of Rs. 83,52,676/- ....

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.....16918 and 16919 of 2017, along with a batch of appeals in CA Nos.10258 to 10296 of 2011. 9. Thus, the orders of CESTAT passed in December 2015 and September 2016 directing the grant of refund, attained finality with this Court rejecting '10' statutory appeals filed by the Department and the orders passed by a Division Bench of this Court directing refund, in WP No.1707 and 1734 of 2017 attained finality with the dismissal of the Civil Appeals by the Supreme Court. Eventually, the adjudicating authority granted refund, but did not grant interest as provided in Section 27 A of the Act. Therefore, the petitioner filed appeals claiming interest, but the Commissioner (Appeals) rejected the claim. However, the CESTAT allowed the appeals filed ....

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....uch rate, not below five per cent and not exceeding thirty per cent. per annum as is for the time being fixed by the Central Government, by notification in the Official Gazette, on such duty from the date immediately after the expiry of three months from the date of receipt of such application till the date of refund of such duty: Provided that where any duty, ordered to be refunded under sub-section (2) of section 27 in respect of an application under subsection (1) of that section made before the date on which the Finance Bill, 1995 receives the assent of the President*, is not refunded within three months from such date, there shall be paid to the applicant interest under this section from the date immediately after three months from ....

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....r that the starting point for calculation of interest is the expiry of three months from the date of receipt of the application. The date of commencement of the liability for payment of interest is not relatable to either the date of the original order or the date of the order of the appellate authority but relatable only to the date of expiry of three months from the date of the application. Therefore, it leaves no iota of doubt that the assessee in this case became entitled to interest from the date of expiry of 3 months of the date of application. Hence, the question of law raised by the Revenue is answered against them and the four appeals are dismissed. 17. Coming to the two writ petitions, what the Adjudicating Authority has done is....