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Issues:
Refund of interest period and rate of interest calculation. Analysis: The appeal was against an order granting interest to the appellant, which was upheld by the Commissioner (Appeals). The appellant imported waste oil, classified under Heading No. 28.23, but the Assistant Collector reclassified it under 3403 of CTA, directing duty payment. The Tribunal allowed the appellant's appeal, leading to a refund claim for the pre-deposit amount. The adjudicating authority granted the refund but rejected the interest claim. The Commissioner (Appeals) accepted the interest claim for a limited period based on Section 27A of the Customs Act, 1962. The appellant challenged this, arguing for interest from the date of final appeal disposal and a 12% rate, citing a Supreme Court case. The Tribunal found the interest granted to the appellant covered three amounts totaling Rs. 22,30,000, but the interest period was not cohesive. The appellant claimed 24% interest from the pre-deposit date, citing the need for interest on deposited amounts. Referring to a Board Circular, the Tribunal noted that interest should start three months after the appeal disposal date unless stayed. As the appeal was not stayed, interest was due from three months after the disposal till the refund date. The Tribunal rejected the Revenue's argument against the Board's direction on interest period. Regarding the interest rate, the Tribunal found Section 27A of the Customs Act, 1962 not applicable. The appellant's claim for 24% interest was deemed unjustified, with the Tribunal citing a Supreme Court case justifying a 12% rate. Therefore, the Tribunal modified the order, allowing the appeal and adjusting the interest period and rate accordingly. In conclusion, the Tribunal upheld the interest payment to the appellant from a specific date based on the Board's Circular and adjusted the interest rate to 12% in line with a Supreme Court decision, modifying the order in favor of the appellant.
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