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TMI Blog2005 (12) TMI 277X X X X Extracts X X X X X X X X Extracts X X X X ..... n 27 for the purpose of Section 27(A) dealing with interest - According to Section 27(A) of the Act, if the duty ordered to be refunded in terms of sub-section (2) of Section 27 is not refunded within three months from the date of receipt of application under sub-section (1) of Section 27, the interest is payable in terms of Section 27(A) - Therefore, the Tribunal below wrongly proceeded as if the date of filing of the claim was December 22, 1998. We have already pointed out that refund claim was really made on 28th September, 1987, but having filed such application before the date of assent of the President to Finance Bill, 1995, in view of proviso to the Section 27(A) of the Act, the appellant will be entitled to get interest from the dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act on 30th July, 1993. The present appellant filed reply to the said notice and ultimately, by the order dated 7th April, 1994, the Assistant Commissioner sanctioned refund but credited the said amount to the Consumer Welfare Fund. (c) Being dissatisfied, the present appellant preferred an appeal and the Collector (Appeals) remanded the case back on 7th September, 1994 for fresh consideration. (d) On 16th May, 1995, the Assistant Commissioner again allowed the claim of refund with a direction to credit the amount to Consumer Welfare Fund. The appellant again preferred an appeal but the Commissioner (Appeal) dismissed the appellant's appeal. (e) Being dissatisfied, the appellant preferred an appeal before the Tribunal and by order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... present reference has been filed and a Division Bench of this court entertained the appeal on the question whether the appellants were entitled to the interest from the year 1995 till the amount was actually paid. 4. To appreciate the question involved herein it will be profitable to refer to the provisions contained in Section 27(A) of the Act which are quoted below: "27A. Interest on delayed refunds. - If any duty ordered to be refunded under sub-section (2) of Section 27 to an applicant is not refunded within three months from the date of receipt of application under sub-section (1) of that section, there shall be paid to that applicant interest at such rate, [not below five per cent.] and exceeding thirty per cent per annum as is fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he legal battle for more than twelve years, the appellant got the relief from the Tribunal by an order dated 9th February, 1998 with a direction for refund to the appellant. Therefore, in the present case, the application in terms of Section 27(1) of the Act was filed on 28th September, 1987 and order in terms of Section 27(2) of the Act was passed by Tribunal on 9th February, 1998 and in view of the explanation added to Section 27(A) of the Act, the order passed by the Tribunal should be deemed to be an order passed under sub-section (2) of Section 27 for the purpose of Section 27(A). 6. According to Section 27(A) of the Act, if the duty ordered to be refunded in terms of sub-section (2) of Section 27 is not refunded within three months ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... diately after expiry of three months from the date when President gave assent to the Finance Bill, 1995 till the date of actual payment, namely, 25th February, 1999. 9. We accordingly answer the reference by holding that the appellant in the present case is entitled to get interest from the expiry of three months from the date of giving assent of the President to the Finance Bill, 1995 till 29th February, 1999, the date of passing of order of delayed payment without interest. The reference is, thus, allowed with costs which we assess at 300 G.Ms. 10. [Order per : Arun Kumar Bhattacharya, J.]. - I agree. 11. After this order is passed, Mr. Kukherjee, learned Advocate for the respondent, prays for stay of operation of this order. In vie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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