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Issues:
1. Interest payable by Revenue against withholding of excess Customs duty. 2. Legitimate Customs duty payable at 10% but realised at 25% leading to a dispute. 3. Application for refund made in 1995, refund sanctioned in 2001 without clear record of timing. 4. Pendency of refund application and entitlement to interest under Section 27A of the Customs Act, 1962. 5. Requirement for factual report on various aspects of the case. 6. Direction for a report submission and hearing to decide the issue. 7. Examination of the higher authority's role in avoiding delays and explanation for deviation from statutory mandates. Analysis: 1. The primary issue in this case revolves around the interest of Rs. 6,76,906 payable by the Revenue due to the withholding of excess Customs duty, which was realized from the appellant in contravention of Notification 59/95-Cus. The appellant contests the excess duty realization of 15% beyond the legitimate 10% duty, leading to a refund application made in 1995 and subsequently sanctioned in 2001 without a clear timeline record. 2. The discrepancy in the duty rate, where 25% was collected instead of the prescribed 10%, raises questions about the application of Section 27B of the Customs Act, 1962, regarding interest payment. The law typically prohibits interest if a refund is issued within three months of application, but the extended timeline in this case complicates the assessment of interest eligibility. 3. The prolonged pendency of the refund application for almost six years prompts an evaluation of whether the delay entitles the appellant to interest under Section 27A of the Customs Act, 1962. The ambiguity surrounding the timeline and the lack of clarity in record-keeping necessitate a detailed examination of the procedural adherence and statutory compliance. 4. To address the uncertainties and discrepancies, the authorities are directed to provide a factual report on critical aspects such as the reason for the refund, adherence to statutory limitations, communication of refund orders, hearing opportunities granted to the appellant, and the timeline of refund processing. This comprehensive report submission is mandated by a specified deadline to facilitate a thorough review and decision on the matter. 5. The Tribunal emphasizes the importance of expediting the case to avoid unnecessary delays and calls for the higher authority's involvement to ensure timely resolution. Additionally, the Assessing Officer's deviation from the prescribed duty rate warrants scrutiny, especially if the Revenue does not contest the validity of the relevant notification. Upholding statutory provisions and notifications is highlighted as crucial to maintaining legal integrity and compliance in such matters.
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