S.27A Customs Act | Interest On Delayed Refund Is Payable After Three Months Of Date Of Refund Application, Not From Date Of Order: Bombay HC

Bombay High Court clarified that interest on delayed refunds under Section 27A of the Customs Act is payable after three months from the date of the refund application, not from the date of the order. The court ruled that the interest liability arises only if the refund is not processed within three months of the application. The case involved a dispute over the calculation of interest on delayed refunds, with the petitioner arguing for interest from the date of the order. The court’s decision provides clarity on the interpretation of Section 27A and the timeline for interest payments on delayed refunds.