Customs Act, 1962 — Chapter V: Levy of, and Exemption from, Customs Duties
27A. Interest on delayed refunds
If duty ordered refunded under section 27(2) is not refunded within three months of receipt of the application, interest is payable at a rate (not below 5% and not exceeding 30% per annum) fixed by the Central Government by notification, from the date immediately after the expiry of the three months until the date of refund. Explanation: where a refund order is made by the Commissioner (Appeals), Appellate Tribunal or a court against an order of the Assistant/Deputy Commissioner under section 27(2), that order is deemed an order under section 27(2) for the purposes of this section.
