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2021 (11) TMI 759 - AT - CustomsInterest on refund - relevant time - to be calculated from expiry of three months after passing of the Tribunal’s final order or it has to be calculated from the date of final order of the tribunal - rate of interest should be 6% or 15% or any other rate - entitlement of interest on interest - HELD THAT:- In the earlier round of litigation in the same case this tribunal in the order No A/1641/WZB/AHD/08 dated 19.08.2008 [2008 (8) TMI 731 - CESTAT, AHMEDABAD] held that interest liability arises from the date of the order of the tribunal and not the date of judgment of the Hon’ble Supreme Court - In the above order of the tribunal though the order of the commissioner(Appeals) was upheld but at the same time it was stated that interest liability arises from the date of order of the tribunal. Rate of interest - HELD THAT:- The rate of interest is statutorily prescribed under section 27 (A) read with Notification issued there under according to which 6% as rate of interest was prescribed. The departmental officer is bound to follow the statutory provision strictly and therefore, no interest more than 6% can be calculated. Even this tribunal which is creature under the statute of Customs Act cannot decide the rate of interest out of the statutory provisions. Accordingly, the rate of interest i.e. 6% decided by the Lower Authority is correct and legal - Learned Commissioner (Appeals) has rightly held that the Adjudicating Authority has rightly applied simple rate of interest as 6% P.a. Therefore, the assesseee cannot be granted interest at the rate of 15% or any other rate above 6%. Entitlement of interest on interest amount - HELD THAT:- Learned Commissioner (Appeals) has concluded that being a creature of the statute he has no power to allow interest on interest amount to the appellant. There are no infirmity in the above finding. Even this Tribunal also being a creature under statute of customs Act cannot decide anything beyond the provisions of the statue of the Customs Act. There is no statutory provision for granting the interest on interest. Therefore, the decision on this issue by the Learned Commissioner (Appeals) is legal and correct - we concur with the Commissioner (Appeals) on the issue of rate of interest and interest on interest. Appeal is partly allowed.
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