Interest on delayed refunds
Section 27A of the Customs Act, 1962 deals with interest on delayed refunds. 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, [ not below five per cent.] and not e The Act came into force on 01 Feb 1963.
1[27A. Interest on delayed refunds.--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, 2[ not below five per cent.] and not exceeding thirty per cent. per annum as is for the time being fixed 3[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 4[, National Tax Tribunal] or any court against an order of the 5[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 4[, 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.]
Section 27A, The Customs Act, 1962 (Act 52 of 1962).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
Referred to by 2
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Pooja Impex vs Union of India
Court's Decision & Legal Precedent
When a customs authority has already ordered refund of excess payment and the principal amount has been refunded, the High Court may dispose of the writ petition with liberty to the petitioner to pursue interest claims through proper representation procedure under Section 27A of the Customs Act, with a direction to the authority to consider and decide such representation within a specified timeframe.
On this section: Interest on delayed payment of refund - Court granted liberty to petitioner to make representation for interest under this section and directed respondent to consider and decide within two months
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… Section 27A was introduced in the Customs Act to provide for payment of interest on refunds of duty. Similar provision was also simultaneously made under section 11BB of the Central Excise Act. While clarifying section 27A of the Customs Act, in above circular it was provided as under:- 67.2.2 It has also been provided that in cases where appellate remedies are resorted to either by the Department or the assessee, the refund finally payable shall bear interest for the period starting from the date immediately after the expiry of …
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… Heard learned Senior Counsel appearing for the appellants and the learned Standing Counsel appearing for the respondents and perused the materials placed before this Court. 11. We do not agree with the submissions made by the learned Senior counsel appearing for the appellants. Section 27 and 27A of the Customs Act deal with claim for refund of duty and interest on the belated refunds respectively. A reading of Section 27 of the Customs Act shows that any person claiming refund of any duty paid pursuant to an order of assessment or otherwise has to make an application for refund of such duty within a period …
Made under this section, and citing it
1 instrument states that it was made under this provision — the power to make it comes from here, so a change to any of them changes what this section requires in practice. Newest first.
Another 1 instrument names this provision in its title or its text without being made under it.
Questions about Section 27A
What have the courts held on Section 27A of the Customs Act?
Pooja Impex vs Union of India (11 Feb 2008) is the leading judgment on this section among those set out below: Interest on delayed payment of refund - Court granted liberty to petitioner to make representation for interest under this section and directed respondent to consider and decide within two months.
How do I find court cases under Section 27A of the Customs Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Customs Act 1962 27A, section 27A Customs Act 1962, section 27A of the Customs Act. People searching for it also type 27a customs act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Pooja Impex vs Union of India (11 Feb 2008).
What should I read with Section 27A of the Customs Act, and has it changed?
Its own text turns on section 27 (Claim for refund of duty), so none of them can safely be read on its own. 2 other provisions in this corpus refer back to it. The rules and notifications made under it are where it actually bites, and there is one: most recently Notification No.75/2003-Cus(NT),dt. 12.09.2003 (2003).
When did Section 27A of the Customs Act come into force?
Section 27A of the Customs Act, cited as Customs Act 1962 27A, came into force on 01 Feb 1963, having been enacted on 13 Dec 1962. It is in force as at the date shown on this page.
Other sections of this Act
- 28. Recovery of duties not levied or not paid or short-levied or short-paid or erroneously refunded2145 words
- 2. Definitions1638 words
- 129A. Appeals to the Appellate Tribunal1170 words
- 27. Claim for refund of duty1060 words
- 127C. Procedure on receipt of an application under section 127B1056 words
- 138C. Admissibility of micro films, facsimile copies of documents and computer print outs as documents and as evidence872 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 14 Oct 2026. This page is not a substitute for legal advice.