Case Law Details
M/s. Maithan Ceramics Limited Vs The Commissioner of Central Tax (Andhra Pradesh High Court)
An analysis of the aforesaid statutory morphism would show while the original provision stipulated interest would be payable at a rate specified in Section 27A after expiry of three months from the date of communication of the order of the appellate authority, till the date of refund of such amount, the substituted provision provided for interest at a notified rate not below 5 per cent and not exceeding 36 per cent from the date of payment till the date of refund of such amount. Moreover, the proviso to the substituted provision clarified that all amounts deposited under Section 129E prior to the commencement of the substituted provision on and from 2014 would be guided by pre-amended section 129EE. Or in other words, interest on pre-deposits which were made prior to 2014 would be at a rate specified in Section 129EE (prior to its substitution) and for a period commencing after expiry of three (3) months from the date of communication of the order of the appellate authority till the date of refund.
We note that in the rectified order the Tribunal has merely clarified this fact as in its earlier order a wrong provision had been quoted. Hence, we reiterate that the interest on the pre-deposit refunded to the appellant is to be determined as pre amended Section 129EE of the Customs Act i.e., for a period commencing after expiry of three (3) months from the date of communication of the order of the appellate authority till the refund of such amount and not from the date of deposit of the said amount till the date of refund.
FULL TEXT OF THE JUDGMENT/ORDER OF ANDHRA PRADESH HIGH COURT
1. The Appeal is directed against the rectification order, dated 23.12.2019, passed in Miscellaneous Application No.C/ROM/30328/2019 in Customs Appeal No.30949 of 2018, by the Customs, Excise and Service Tax Appellate Tribunal (for short, ‘the Tribunal’), Regional Bench at Hyderabad, wherein the Tribunal rectified its earlier order to the following extent:
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