TMI Blog2019 (5) TMI 881X X X X Extracts X X X X X X X X Extracts X X X X ..... r merges. The last portion of the substantial part of the Section 27A makes it clear that the starting point for calculation of interest is the expiry of three months from the date of receipt of the application. The date of commencement of the liability for payment of interest is not relatable to either the date of the original order or the date of the order of the appellate authority but relatable only to the date of expiry of three months from the date of the application - Therefore, it leaves no iota of doubt that the assessee in this case became entitled to interest from the date of expiry of 3 months of the date of application. The date of expiry of the period of three months from the submission of the application, cannot be the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Customs Tariff Act, 1975. The petitioner claimed refund of the Special Additional Duty paid on the import of Timber Logs in accordance with Notification No.102/2007 dated 14.09.2007 and made 11 refund applications to the total tune of ₹ 83,52,676/- The refund claimed related to the period from May 2009 to November 2011. 4. The refund claim was rejected by the Adjudicating Authority, in respect of Timber logs that were sold after cutting the Timber logs into smaller pieces. The orders of rejection, about 11 in number, became the subject matter of the 11 statutory appeals before the CESTAT. The CESTAT allowed the appeals by orders passed on various dates in December 2015 and September 2016. 5. Thereafte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with the dismissal of the Civil Appeals by the Supreme Court. Eventually, the adjudicating authority granted refund, but did not grant interest as provided in Section 27 A of the Act. Therefore, the petitioner filed appeals claiming interest, but the Commissioner (Appeals) rejected the claim. However, the CESTAT allowed the appeals filed by the assessee and directed the Department to grant interest calculated from the date of expiry of the period of 90 days from the date of filing of the application for refund. This order of the CESTAT was dated 25.04.2018. 10. However, the Adjudicating Authority granted interest, only in relation to a portion of the period, calculated from the date of filing of the reminder after the dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 subsection (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 4[, National Tax Tribunal] or any court against an order of the 5[Assistant Commissioner of Customs or Deputy Commissioner of Cu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the original order or the date of the order of the appellate authority but relatable only to the date of expiry of three months from the date of the application. Therefore, it leaves no iota of doubt that the assessee in this case became entitled to interest from the date of expiry of 3 months of the date of application. Hence, the question of law raised by the Revenue is answered against them and the four appeals are dismissed. 17. Coming to the two writ petitions, what the Adjudicating Authority has done is to grant interest from the date of the reminder sent after the disposal of the writ petitions. This is clearly contrary to the mandate of Section 27 A of the Act. The date of expiry of the period of three months from ..... X X X X Extracts X X X X X X X X Extracts X X X X
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