2012 (9) TMI 927 - AT - Customs

Summary

Issues involved: Refund of custom duty denied on the grounds of limitation.

Summary:
The appellant imported chemicals, paid excess duty, and challenged the assessment. The Commissioner (Appeals) set aside the assessment on 28-5-2008, directing re-assessment. The Revenue appealed to the Tribunal, which confirmed the order on 5-8-2011. The appellant filed a refund claim on 18-2-2009, before the re-assessment was done on 16-2-2010 & 31-3-2010. The claim was rejected as time-barred on 30-4-2010, upheld by the Commissioner (Appeals) on 28-1-2011. The issue was the starting date of the limitation period for the refund claim.

The appellant argued that the limitation should start from the date of re-assessment on 31-3-2010, while the Revenue contended it should start from the date of setting aside the assessment on 28-5-2008. The Tribunal considered the provisions of Section 27 of the Customs Act, 1962, which allows filing a refund claim within six months of a judgment, decree, or direction of the appellate authority. Since the Tribunal's order on 5-8-2011 set aside the original assessment, the limitation for the refund claim started from that date.

The Tribunal held that the refund claim was within the time limit and set aside the previous order, directing the adjudicating authority to consider unjust enrichment and pass the order accordingly within 30 days.