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2015 (11) TMI 1083 - AT - CustomsRefund claim of interest paid in excess than prescribed rate - whether the appellants paid interest at a rate higher than the rate fixed by the Central Government for the period for which the interest was paid as per the directions of the Department - Held that:- Rate of interest under Section 28AB of the Act was fixed at 13% p.a. vide Notification No.76/2003-CUS(NT), dated 12.09.2003 and thus evidently the appellants paid interest in excess of what was required to be paid. - There had been no Show Cause Notice requiring the appellants to show cause as to why the interest should not be demanded/recovered from 2001. Indeed, even if it is eventually held through proper process of Show Cause/adjudication that the interest was leviable from the year 2001, the refund of interest paid in excess during the period 30.09.2003 to 29.09.2005 will have to be sanctioned and only then it can be adjusted towards the interest liability arising as a result of quasi-judicial determination that the interest was chargeable/ recoverable from the year 2001. Observation of the adjudicating authority to the effect that because the interest is recoverable from the year 2001, the Department charged interest from the appellant as per law is devoid of any basis, logic or rationale. The Department demanded interest for the period 30.09.2003 upto 29.09.2005 at the rate of 15% p.a. (which the appellants paid), while the applicable rate of interest during the period was 13% p.a. as mentioned in para 5 above. Thus the amount of interest paid (@ 15% p.a.) was evidently more than the interest payable (@ 13% p.a.) and consequently the appellants were clearly entitled to (sought) refund of excess interest so paid. - Impugned order is set aside - Decided in favour of assessee.
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