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2017 (5) TMI 498 - HC - CustomsEntitlement to interest - delay in giving credits - drawback on imported materials used in the manufacture of goods which are exported - Validity of application of Public Notice No.150/95, dated 21.9.1995 with retrospective effect - beneficiaries of Pass Book Scheme - The petitioners pointed out that the credits have to be given in the Pass Book issued to the petitioners. Once the earlier stand was incorrect and the petitioners were deprived of the credits without adherence to the law, the credits are in terms of money. They being entitlement for payment of customs duty can therefore be safely equated with money. The money was not released or paid in terms of the entitlement of the petitioners. That was delayed. The wrongful deprivation of this money, therefore, should attract interest. Held that: - A bare perusal of Section 27A would indicate that, if any duty ordered to be refunded under subsection (2) of Section 27 to an applicant is not refunded within three months from the date of receipt of application made under subsection (1) of Section 27, then, there shall be paid to that applicant interest at such rate, not below five per cent and not exceeding thirty per cent per annum as is for the time being fixed by the Central Government, by Notification in the Official Gazette. Where any drawback payable to any claimant under Sections 74 or 75 is not paid within the period set out under subsection (1) of Section 75A, then, there is an obligation to pay interest. That interest is to be paid at the rate fixed under Section 27A. The entitlement for interest is from the date after the expiry of the period of one month till the payment of such drawback. At the relevant time, it was three months. It is, therefore, not possible to agree with Mr. Rao that for such delayed release of the supplementary credit, though in terms of money, there is no obligation to pay interest - respondents shall pay the amount of interest quantified at ₹ 1,58,91,182/ within a period of six weeks - petition allowed - decided in favor of petitioner.
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