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2016 (5) TMI 439 - AT - CustomsAdmissibility of refund of redemption fine and penalty - Redemption fine and penalties have been paid by the appellant and not by the 11 importers, and technically speaking the TR-6 challans have been issued in the name of the 11 importers - Revenue submitted that in terms of the provisions of Section 27 of the Customs Act, duty and interest, if any, paid on the goods can be claimed in a refund by any person who has paid or borne it. Held that:- the order was passed against the importers (whether right or wrong) and the redemption fine and penalties were deposited by the importers by various TR-6 Challans in their name and the appeals were also filed by the importers before the Tribunal. Even before the Tribunal, the appellant never took a stand that redemption fine and penalties should not have been imposed upon them and the same should have been directed towards exporter of the goods. The appeal stands allowed on the merits of the case only. In such a scenario, the refund arising out of the said order of the Tribunal would be available to the importers only and the fact that whether the money for the said deposits were provided by the exporters or not, would make no difference. Section 27 of the Customs Act which relates to the refund of any duty and interest paid by an assessee, in terms of an order of assessment relates to payment of duty and interest only and does not cover the redemption fine and penalties. As such even if the redemption fine and penalty amounts were provided by the appellant to the various importers for further deposit of the same with the Revenue, it has to be considered as an internal arrangement between the exporter and importers and filing of the refund of the same by the exporter, even though the amounts were deposited by the importers, cannot be held to be justifiable inasmuch as there is no provision in the Customs Act to find out as to who has actually provided money to the person depositing the same. The law recognizes only the importers and by setting aside the redemption fine and penalties imposed upon them, it is the importers only who are recognized by law for the purpose of refund of the amounts in question. Therefore, no reason to interfere in the impugned orders. - Decided against the appellant
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