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2015 (4) TMI 159 - AT - CustomsInterest on refund claim - revenue contended that the refund amount has been sanctioned within three months from the date of judgment of Hon'ble Supreme Court in dismissing the Special Leave Petition (SLP) filed by the department; and that for a substantial period, the amount was lying with the Consumer Welfare Fund and not with the department. Thus, according to impugned order, since there is no delay in sanction of refund by the Customs Department, the appellant is not entitled for interest thereon - Held that:- it is an admitted fact on record that the refund claim application filed by the appellant on 24.12.1998 was ultimately sanctioned by the Assistant Commissioner (Refund) on 13.04.2011 i.e. after a lapse of more than 12 years. As per the statutory mandates of Section 27 read with Section 27A of the Act, the time limit for payment of the refund amount to the appellant by the Customs authorities (without interest) expired on 23.03.1999. Since, claimed amount was finally paid to the appellant on 13.04.2011, in our considered view, the appellant is entitled for the statutory interest from 24.03.1999 to the date when the refund was eventually paid i.e. 13.04.2011. Though, the refund amount was paid to the claimant-appellant consequent upon dismissal of SLP filed by the revenue, but the date of computation of the interest amount will commence from the date of cessation of three months of the refund application, and not from the date, when the refund amount was finally paid. - beneficiary of the principal amount is entitled for compensation in the form of interest because; he is deprived of its right of claim for a considerable period of time at the discretion of the person responsible for paying the amount. - Following decision of J.K. Cement Works -Vs:- Asst. Commissioner of Central Excise & Customs, reported in [2004 (2) TMI 78 - HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR] - Impugned order is set aside - Decided in favour of assessee.
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