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2011 (4) TMI 142 - HC - CustomsEPCG Scheme - Refund - It is seen from the facts herein that the assessee imported certain capital goods for the manufacture of Ammonium Nitrate and Nitric Acid - if any duty ordered to be refunded under sub section (2) of Section 27 of the Customs Act is not refunded within a period of three months from the date of receipt of application, interest shall be payable by the Central Government on the refund claim - it is a well settled principle of law that Section does not call for any interpretation - Given the settled principle of law that the Legislature knows the law prevailing at the time when the amendment was brought forth and that the Legislature has chosen to restrict the grant of interest on delayed refunds alone, it is difficult to stretch the language in Section 27A to accept the plea of the assessee that it is entitled to interest on the interest too on the score that Section 27(2) contemplated refund of duty and interest - It must be noted herein that the decision of the Apex Court is based on the interpretation of the word 'any amount' as appearing in Sections 240 and 244(1A) of the Income Tax Act and in the absence of any specific provision on grant of interest on the belated refund of the interest component, it applied the general principles - Decided against the assessee
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