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2009 (6) TMI 316 - CESTAT, MUMBAIDelay in refund - (a) What should be the rate of interest the respondent is entitled to under Section 27A of the Customs Act? - (b) Is the respondent entitled to claim interest on the amount of interest payable under Section 27A ibid? - according to the learned counsel, interest is liable to be paid to a refund-claimant at the rate prescribed by the Central Government as on the date immediately succeeding the period of three months from the date of refund application. It is argued that this time is fixed under Section 27A and, therefore, interest has to be paid at the same rate for the entire period of delay. - This argument would render the remaining successive notifications redundant and, therefore, the argument cannot be accepted. The expression “time being” denotes each and every point of time of delay If the delay starts on 12-5-2000, the rate of interest payable will be 15%. If this delay continues beyond 10-5-2001, interest becomes payable at the rate of 9% for the period from 11-5-2001. Likewise, where the delay continues beyond 12-5-2001, interest becomes payable at the rate of 8% from 13-5-2002. - The second question relates to the assessee’s claim for interest on interest - respondent submits that interest on interest requires to be paid by the Revenue at the same rate at which the simple interest is payable under Section 27A of the Customs Act, on the principle laid down by the Apex Court in Sandvik Asia Ltd. v. CIT, Pune - - I find that the lower appellate authority had no occasion to consider this kind of an argument. – Commissioner (A) further remanded matter exceeding his jurisdiction - I allow this appeal by way of remand after setting aside his order
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