9911796707
TMI Blog2018 (2) TMI 36X X X X Extracts X X X X X X X X Extracts X X X X ..... ereof bills of entries were filed and the petitioner paid the duty on the basis of self assessment. On 23.07.2007, the petitioner filed 11 applications for refund of duty. 3. By an order dated 30.03.2008, the Assistant Commissioner of Customs sanctioned the refund but held that the same was not admissible as it constituted undue enrichment. The Assistant Commissioner, therefore, directed the amount of refund to be transferred to the Consumer Welfare Fund. In other words, the petitioner's application for refund was in fact rejected on the ground of undue enrichment. The petitioner and the respondents challenged this order. The petitioner challenged the order insofar as it transferred the refund to the Consumer Welfare Fund and the respo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s from the receipt of the application dated 23.07.2007 till payment. By the impugned order, the respondents rejected the application. The respondents contend that the petitioner is entitled to interest only from the date of the final order which in this case was passed on 26.05.2015. The petitioner contends that it is entitled to interest from the expiry of 90 days from the date of the application under Section 27(1). 8. Section 27 and 27(A) of the Customs Act, 1962 insofar as they are relevant read as under:- 27. Claim for refund of duty.- (1) Any person claiming refund of any duty or interest,- (a) paid by him; or (b) borne by him, may make an application in such form and manner as may be prescribed for such refund to the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 paid to the applicant interest under this section from the date immediately after three months from such date, till the date of refund of such duty. Explanation.- Where any order of refund is made by the Commissioner (Appeals), Appellate Tribunal, [National Tax Tribunal] or any court against an order of the Assistant Commissione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 27A then provides for the payment of interest from the date immediately after expiry of three months from the date of receipt of "such application". The words "such application" refer to the application under Section 27(1). As we mentioned earlier, no other application is even referred to in the main part of Section 27A. It follows, therefore, that interest is payable under Section 27A from the expiry of 90 days from the date of the application for refund under Section 27(1). 11. The respondents' reliance upon the explanation is not well founded. The explanation does not deal with the period for which interest is paid. It only provides that the order of the Appellate Authority shall be deemed to be an order passed under sub sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to be refunded under subsection (2) of Section 11-B to any applicant is not refunded within three months from the date of receipt of application 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 11-B in respect of an application under sub-section (1) of that section made before the date on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pt of the application. The Explanation appearing below the proviso to Section 11-BB introduces a deeming fiction that where the order for refund of duty is not made by the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise but by an appellate authority or the court, then for the purpose of this section the order made by such higher appellate authority or by the court shall be deemed to be an order made under sub-section (2) of Section 11-B of the Act. It is clear that the Explanation has nothing to do with the postponement of the date from which interest becomes payable under Section 11-BB of the Act. Manifestly, interest under Section 11-BB of the Act becomes payable, if on expiry of a period of three mon ..... X X X X Extracts X X X X X X X X Extracts X X X X
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