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2019 (6) TMI 1248 - CESTAT NEW DELHIInterest on delayed refund - time limitation for Refund of Special Excise Duty and on account of excess payment of CVD - N/N. 9/2006 dated 01.03.2006 - Section 27 of Customs Act - HELD THAT:- The refund claim was filed as back as 31.07.2012 and the subsequent application of refund dated 11.08.2014 was nothing but the continuation of the said previous application itself. The interest has been denied relying upon Section 27 (1B) (c) of Customs Act, 1962. Perusal of Section 27 makes it clear that the period of limitation of one year is for the person claiming refund - In the present case the application dated 31.07.2012 is within one year of the last Bill of Entry among 13 i.e. dated 05.01.2012. Even first Bill of entry dated 18.08.2011 fulfills the aforesaid limitation as applicable to the appellant. Section 27 (1B) prescribes the mode of computing the aforesaid period of limitation of one year. Thus, Sub-clause (c) thereof gives the extended time to the appellant and not to the Department. Section 27 (a) of the Customs Act says that if any duty ordered to be refunded under Sub-Section (2) of Section 27 to the applicant is not refunded within 3 months from the date of receipt of application under sub-section (1) of Section 27 they shall be paid to the applicant the interest at such rate as is mentioned in the said Section - the application for refund was filed on 31st July, 2012, another application in continuation thereof was filed on 11.08.2014. Reassessment was on 24.11.2015. Apparently, and admittedly, the amount of refund has been sanctioned but has not been refunded within 3 months from the date of receipt of the above mentioned application, Section 27 (a) being a statutory mandate upon the Department, the Department is liable to pay the interest on the sanctioned amount for the delayed period. Appeal allowed - decided in favor of appellant.
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