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Commnr. Of Income Tax, Mumbai vs Tata Chemicals Ltd. on 28 March, 2003

27. Revenue has retained the redemption money and the penalty amount without any right and therefore in view of the decision of the Hon'ble Supreme Court in the case of Tata Chemicals Limited (supra), we are of the view that respondent is under obligation to grant interest to the petitioner on the whole amount of Rs. 9,30,000/- (redemption charges and penalty) and not just on the pre-deposit amount, which was the statutory requirement under Section 129E of the Customs Act, 1962.
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