Interest on delayed refunds.

³[SECTION 27A.

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,⁴[ not below five percent.] and not exceeding thirty percent per annum as is for the time being fixed ⁵[by the Central Government by Notification in the Official Gazette], on such duty from the date immediately after the expiry of three months from the date of receipt of such application till the date of refund of such duty : 

Provided that where any duty, ordered to be refunded under sub-section (2) of section 27 in respect of an application under sub-section (1) of that section made 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 duty. 
      
Explanation. - Where any order of refund is made by the Commissioner (Appeals), Appellate Tribunal, ²[National Tax Tribunal] or any court against an order of the ¹[Assistant Commissioner of Customs or Deputy Commissioner of Customs] under sub-section (2) of section 27, the order passed by the Commissioner (Appeals), Appellate Tribunal, ²[National Tax Tribunal]Tribunal or as the case may be, by the court shall be deemed to be an order passed under that sub-section for the purposes of this section.]

Note :-

1. Substituted by Act 27 of 1999, section 100, for “Assistant Commissioner of Customs” (w.e.f. 11-5-1999). Earlier the words “Assistant Commissioner of Customs”were substituted by Act 22 of 1995, section 50, for the words “Assistant Collector of Customs (w.e.f. 26-5-1995).

2. Inserted by Act 49 of 2005, section 30 and Schedule, Part VI- 2 (w.e.f. 28-12-2005).

3. Inserted by Act 22 of 1995, section 55 (w.e.f. 26-5-1995).

4. Substituted by Act 14 of 2001, section 102, for “not below ten percent” (w.e.f. 11-5-2001). 

5. Substituted by Act 10 of 2000, section 78, for “by the Board” (w.e.f. 12-5-2000).