SECTION 75A. : Interest on drawback

(1) Where any drawback payable to a claimant under section 74 or section 75 is not paid within a period of one month [OLD two months] from the date of filing a claim for payment of such drawback, there shall be paid to that claimant in addition to the amount of drawback, interest at the rate fixed under section 27 A from the date after the expiry of the said period of one month [OLD two months] till the date of payment of such drawback.
(Bold Words substituted vide Finance Bill 2003)

(Proviso omitted vide Finance Bill 2003)

[OLD Provided that where any drawback, ordered to be paid under section 74or section 75 in respect of a claim under any of the said sections filed 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, tin the date of refund of such drawback.]

(2) Where any drawback has been paid to the claimant erroneously or it becomes otherwise recoverable under this Act or the rules made thereunder, the claimant shall, within a period of two months from the date of demand, pay in addition to the said amount of drawback, interest at the rate fixed under section 28AA [OLD - section 28AB ] and the amount of interest shall be calculated for the period beginning from the date of payment of such drawback to the claimant till the date of recovery of such drawback.

(ABOVE CHANGES VIDE THE FINANCE BILL, 2012 WEF 08.04.2011)
 

(Sub section (2) has been amended vide BUDGET 2007-08)

[OLD(2) Where any drawback has been paid to the claimant erroneously, the claimant shall, within a period of two months from the date of demand, pay in addition to the said amount of drawback, interest at the, rate fixed under section 28AA from the date after the expiry of the said period of two months till the dare of recovery of such drawback.]