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TMI Blog2003 (5) TMI 59X X X X Extracts X X X X X X X X Extracts X X X X ..... ustoms, Excise and Gold Control Appellate Tribunal, Kolkata, dated June 21, 2000 and accordingly prayed for direction upon the respondent to release the amount in terms of the order passed by the Tribunal in the connected appeal along with interest payable to the petitioner under Section 75A of the Customs Act. 3.During the pendency of the instant writ application the respondent paid a total amount of Rs. 1,47,56,910/- inclusive of principal amount of drawback of Rs. 79,82,500/-. In calculating the amount of interest so paid, the respondents authority has taken September 30, 1996 to be the date of filing of claim for drawback and accordingly they had given interest with effect from December 29, 1996 at the rate of 15% per annum at the sim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e been used in Sections 127C(5) and 143A of the Act. Mr. Meheta contends that intention of the legislature is thus clear that the object of the enactment was to confer right upon the exporter to get interest over interest in cases covered under Section 75A. 7.Mr. Meheta further submits that there was no valid ground for computing interest from December 29, 1996 on the ground that exporter gave first representation against belated payment on September 30, 1996 in answer to certain queries by department. He thus prays for direction for making payment for interest from 25th July, 1996 that is to say after the expiry of three months from the date of "let export" orders. 8.Therefore, the first question that arises for determination in this a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the first year. Similarly, if the interest is payable half yearly, then interest accrued after six months should be added to the principal and interest for the next six months will be calculated on the basis of principal plus interest for the first six months and such procedure will continue until actual payment. 11.We are now to find out whether by virtue of Section 75A or 27A of the Act, the legislature intended that interest at the above compound rate would be payable. To appreciate the said question, the provisions contained in Sections 75A and 27A as those stood at the time of export are quoted below : "Section 27A : If any duty ordered to be refunded under sub-section 2 of Section 27 to an applicant is not refunded within thre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee months from the date of filing a claim for payment of such drawback, there shall be paid to that claimant in addition to the amount of drawback, interest at the rate fixed under Section 27A from the date after the expiry of the said period of three months till the date of payment of such drawback: Provided that where any drawback, ordered to be paid under section 74 or section 75 in respect of a claim under any of the said section filed before the date on which the Finance Bill, 1995 receives the assent of the President, is not refunded within three months from such date, there shall be paid to the applicant interest under this section from the date immediately after three months from such date, till the date of refund of such drawback ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 5, the interest was directed to be calculated with monthly rest, meaning, that after the expiry of every month interest will be added to the principal. I have already indicted that there is no mention of any period of rest in Section 75A or in Section 27A; thus there cannot be any presumption of payment of interest at the compound rate and the intention of the Act is to give interest at the simple rate mentioned therein. Although in Sections 127C(5) and 143A of the Act, the legislature has used the word "simple interest" but mere non-mention of such words in section 75A or in Section 27A cannot imply that the word "interest" should be read as compound interest. I thus answer the first question against the petitioner. 15.So far the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Mr. Meheta that in this case interest should be paid at the rate of 15%, that being the rate of interest notified at the time of export even though for subsequent period the interest have been reduced by further notification. Therefore, interest should be payable in accordance with the rate specified in notification issued from time to time and the respondents authority did not commit any illegality in granting interest at the rate of 8% from the subsequent date in view further notification. 18.In view of what have been stated above I direct the respondent authority to pay the balance amount of interest at the prescribed rate viz 15% per annum simple not from date of making representation but after the expiry of three months from the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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