TMI Blog2006 (7) TMI 494X X X X Extracts X X X X X X X X Extracts X X X X ..... f Notification No. 13/81 applicable to EOU and the same was denied to them. The appellants were not successful before the lower authorities in getting the refund. However, the Tribunal issued a favourable order on 12-10-2000. Consequent to the Tribunal s order refund was sanctioned on 20-8-2002. The appellants claimed interest under Section 27A as the refund was finally granted beyond the statutory time limit. The Commissioner (Appeals), in the impugned order, while granting the request of the appellants for grant of interest observed that interest is payable on expiry of three months from the date of Tribunal s order. The appellants actually claimed interest for the period from 26-8-1995 to 20-8-2002 (date of refund). This is the point of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iod from 1986-1989. In other words, the refund claim were filed prior to enactment of Section 27A. For such cases, proviso to Section 27A will be made applicable. According to the proviso, where the refund claims had been filed prior to the enactment of Section 27A (i.e. 26-5-1995), the period of interest starts from the date of expiry of three months from 26-5-1995. Therefore in the present appeal, the interest would start from 26-8-1995. Since refund was granted on 20-8-2002, interest is payable for the period from 26-8-1995 to 20-8-2002. The Commissioner (Appeals) has held in the impugned order that the interest starts after the expiry of three months from the date of Tribunal s order. This interpretation is incorrect in view of the Expl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plication under sub-section (1) of that section, 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, on such duty from the date immediately after the expiry of three months from the date of receipt of such application till the date of refund of such duty : Provided that where any duty, ordered to be refunded under sub-section (2) of section 27 in respect of an application under sub-section (1) of that section made before the date on which the Finance Bill, 1995 receives the assent of the President, is not refunded within three months from such date, there shall be pa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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