9911796707
TMI Blog2024 (11) TMI 1291X X X X Extracts X X X X X X X X Extracts X X X X ..... t 1962, we observe that upon finalization of provisional assessment, if there is a refund liable to be paid, then it is to be paid within 3 months from the date of final assessment. If there is any delay in payment of the refund, then interest is liable to be paid for the delay in refund. We observe that this section does not talk about filing of the refund application. As per section 18(4), if the refund is not paid within 3 months from the date of final assessment, then interest is payable. Accordingly, we hold that the department is liable to pay interest for the delay in payment of refund, beyond 3 months from the date of final assessment. Thus, allow the appeal filed by the appellant. - HON BLE MR. R. MURALIDHAR MEMBER ( JUDICIAL ) A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2020. As there was no stay against the Order-in-Appeal, the refund amount of Rs. 19,33,991/- was paid to the appellant vide Order-in-Original No. Kol/Cus/DC/15/ARS/2021 dated 06.01.2021. However, no interest was paid to the appellant on such delayed payment which is payable as per Section 18(4) read with Section 27A of the Customs Act 1962. The appellant filed appeal before Commissioner (Appeals) against the non-payment of interest. The Commissioner (Appeals) vide impugned Order-in-Appeal dated 10.08.2021 rejected the appeal on the ground that refund application for Rs. 19,33,991/-, was filed on 05.10.2020 and the lower authority has passed the order for refund within the stipulated time of 3 months provided under section 27A read with Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upported the impugned order. 5. Heard both sides and perused the appeal documents. 6. We observe that the issue involved in the present appeal is interest payable on the refund, which has arisen on account of finalization of provisional assessment. The appellant submits that as per Section 18(4) read with Section 27A of the Customs Act 1962, interest is automatically payable. There is no need to even file a refund application for such refunds. 6.1. For the sake of ready reference, the provisions of section 18(4) allowing interest on delayed payment of refund, is reproduced below: Subject to sub-section (5), if any refundable amount referred to in clause (a) of sub-section (2) is not refunded under that sub-section within three months from t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
