Just a moment...

Report
FeedbackReport
Welcome to TaxTMI

We're migrating from taxmanagementindia.com to taxtmi.com and wish to make this transition convenient for you. We welcome your feedback and suggestions. Please report any errors you encounter so we can address them promptly.

Bars
Logo TaxTMI
>
×

By creating an account you can:

Feedback/Report an Error
Category :
Description :
Min 15 characters0/2000
TMI Blog
Home /

Drawback Interest Must Begin One Month After Export Clearance, Not After Show Cause Notice Resolution Under Section 75A

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....CESTAT determined appellant entitled to drawback interest from 14.04.2003 (one month after "let export order" date) rather than from 01.07.2012 as initially granted. Under Customs Act s.75A and Drawback Rules r.13, interest calculation begins one month from customs clearance order, not from date of show cause notice resolution. CESTAT rejected department's prolonged litigation as grounds for delayed interest, noting appellant shouldn't be penalized for departmental proceedings. The tribunal distinguished from Web Knit Exports precedent, emphasizing that export value documentation was complete and verified at initial filing. Appeal succeeded, granting interest from original eligibility date through drawback payment date at s.27A prescribed rate.....