Amrapali Industries Ltd Vs Commissioner of Customs-Ahmedabad (CESTAT Ahmedabad)
CESTAT Ahmedabad held that under Customs Act interest on sanctioned refund is admissible after three months from the date of application and not from date of Commissioner (A) order.
Facts- The issue involved in the present appeal is that whether the appellant on the sanctioned refund is eligible for interest, for the period from 3 months of date of application for refund or from date of commissioner (Appeals) order whereby the appeal on refund matter has been remanded to the sanctioning authority.
Conclusion- Commissioner (Appeals) has denied the grant of interest only on the basis of explanation appended to Section 27A. In this regard I find that the said explanation is not applicable in the present case for the reason that the refund sanction order was passed by the Deputy Commissioner of Customs. Therefore, as per Section 27A, the appellant is entitled for the interest on the sanctioned refund after three months from the date of application.
Held that the appellant is rightly entitled for the grant of interest on the sanctioned refund from the date, after three months from the date of application, till the date of sanction of refund.
