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2024 (4) TMI 443 - AT - CustomsInterest on delayed refund - Interest for the delay in payment of additional duty - calculation of relevant time - HELD THAT:- As per Section 18(4) of the Customs Act, 1962, it is clear that on finalization of assessment of duty, assessee is entitled for refund and if refund is not made within 3 months from the date of such assessment, assessee is entitled for interest on such amount as per the rate fixed by Central Government under Section 27A of the Customs Act, 1962, till the date of refund of such amount. The ratio of the judgement relied by the appellant the matter of M/S GKN DRIVE LINE (INDIA) LTD. VERSUS COMMISSIONER OF CUSTOMS, NEW DELHI [2013 (8) TMI 355 - CESTAT NEW DELHI], right to interest under Section 18(4) of Customs Act, 1962 is applicable if the due amount is not paid within 3 months from the date of final assessment and not to reckoned 3 months after submission of refund claim as per section 27 of the Customs Act, 1962. Only for the rate of interest, rate fixed by Central Government under Section 27A will apply. Considering the fact that adjudication/appellate authority has not considered the provisions of Sections 18(4) of Customs Act, 1962 in appellant’s case, the appeal is remanded to adjudication authority to consider the plea of the appellant regarding their entitlement of interest under Section 18(4) of the Customs Act, 1962. The Adjudication Authority directed to consider and pass appropriate orders within 4 months after the receipt of the final order. Appeal is allowed by way of remand.
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