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2013 (8) TMI 355 - AT - CustomsInterest on delayed refund – Refund of duty – assessee filed an appeal for refund of duty – supreme court granted the refund in favour of assessee. - Against the refund granted the assessee made claim of interest – department denied the same – assessee contended that refund arose u/s 18 was governed by Section 27 - Revenue denies on the contention that ground that Section 18 (2) entitles to refund if any arises out of finalisation of provisional assessment automatically whereas refund u/s 27 was a claim without a suo motu grant – Held that:- Delay in granting refund having been made even after 18.7.2006 till 13.7.2007 – assessee was entitled to interest on the refund from interest u/s 18(4) – but before 13.7.2006 was time barred - suo motu refund was a grant of section 18(2) whereas claim of refund was envisaged by section 27 – an assessee assumes right to refund u/s18(2) - section 27 determines a right to refund upon claim – court followed Commissioner of Customs Vs. Indian Oil Corporation (2012 (1) TMI 31 - DELHI HIGH COURT) – sub-sections (3), (4) and (5) introduced to section 18 of Customs Act, 1962 have no retrospective effect - Thus right to interest under Section 18(4) of Customs Act, 1962 before 13.7.2006 is accordingly barred. However delay in granting refund having been made even after 18.7.2006 till 13.7.2007, appellant is entitled to interest on the refund from 13.7.2006 to 13.7.2007 only. - decided in favour of assessee.
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