Customs Act, 1962 – ss.75A, 27A – Central Excise Act, 1944 – Foreign Trade (Development and Regulation) Act, 1992 – Foreign Trade (Regulation) Rules, 1993 – Customs, Central Excise Duties and Service Tax Drawback Rules, 1995 – Exim Policy of 1992-1997 – Duty Exemption Scheme – Duty Drawback Scheme – Supplies in civil construction work, eligibility for ‘deemed export’ benefit under the Exim Policy – Respondent, a class-I contractor specializing in the field of civil contract works especially funneling and hydro-electric power projects had completed the work awarded to it in 1996 in a project called Koyna Hydro Electric Power Project, Maharashtra funded by the International Bank for Reconstruction and Development, an arm of the World Bank – Respondent claimed duty drawback and interest for the delayed refund thereof – Entitlement:

Held: On a conjoint reading of the relevant provisions of the Exim Policy, 1992-1997 in conjunction with the Central Excise Act and the Customs Act, it is evident that supply of goods to the project in question by the respondent was a case of ‘deemed export’ and thus entitled to the benefit under the Duty Drawback Scheme – The language employed in the policy made this very clear and there was no ambiguity in respect of such entitlement – Even if there was any doubt, the same was fully explained by the 1995 Rules – It is not correct on the part of the appellants to contend that there was no provision for payment of interest on delayed refund of duty drawback – It is also untenable for the appellants to contend that refund of duty drawback was granted to the respondent as a concession, not to be treated as a precedent – Respondent entitled to refund of duty drawback as a deemed export under the Duty Drawback Scheme – Applications for refund were made in 1996 – Decision to grant refund of duty drawback was taken belatedly on 07.10.2002 whereafter the payments were made by way of cheques on 31.03.2003 and 20.05.2003 – Admittedly, there was considerable delay in refund of duty drawback – Under s. 75A (1) of the Customs Act, where duty drawback is not paid within three months from the date of filing of claim, the claimant would be entitled to interest in addition to the amount of drawback – It provides that the interest would be at the rate fixed u/s.27A from the date after expiry of the said period of three months till the payment of such drawback – The interest rate prescribed u/s.27A at the relevant point of time was not below ten percent and not exceeding thirty percent per annum – The Central Board of Excise and Customs vide its notification bearing No.32/1995 (NT)- Customs dtd. 26.5.1995 had fixed the rate of interest at fifteen percent for the purpose of s.27A – Since there was belated refund of the duty drawback to the respondent, it was entitled to interest at the rate which was fixed by the Central Government at the relevant point of time being fifteen percent – Order of the Division Bench of the High Court not interfered with. [Paras 33-39]