9911796707
|
Home
Issues: Refund of customs duty, interpretation of Section 27 of the Customs Act, 1962, calculation error in the assessment of duty.
Analysis: 1. The case involves a dispute regarding the refund of customs duty paid by M/s. Southern Sulphates and Chemicals (Pvt) Ltd. The company imported various items and paid duty based on the rates indicated by the assessing officer. However, a calculation error resulted in overpayment of duty on one item, leading to a claim for refund, which was initially rejected as time-barred under Section 27 of the Customs Act, 1962. 2. The Collector of Customs (Appeals) allowed the refund claim, stating that the error in totaling the assessments did not constitute an order of assessment under Section 27. The Collector argued that the calculation of the total duty payable, even if done by a clerk for administrative convenience, falls under the purview of assessment. The Collector also mentioned the "Doctrine of Lapse" without elaboration. 3. The Collector appealed against the order, contending that assessment includes the calculation of the total duty payable, and hence, the claim should be governed by Section 27. The Senior Departmental Representative (S.D.R.) supported this argument, emphasizing that assessment is a comprehensive act that includes indicating the quantum of duty payable. The applicability of Section 154 of the Act was also discussed but deemed irrelevant by the S.D.R. 4. The Tribunal analyzed the concept of an "order of assessment" under Section 27, noting that the assessing officer had correctly indicated the duty rates for each item on the Bill of Entry. The error lay in the calculation of duty at a higher rate for one entry. Referring to Section 154, which allows for correction of clerical or arithmetical mistakes, the Tribunal concluded that the calculation error constituted a clerical mistake or an error arising from an accidental slip. Therefore, the Tribunal ordered a correction in the quantum of duty shown in the Bill of Entry. 5. Ultimately, the Tribunal upheld the order of the Collector (Appeals) and dismissed the appeal, granting consequential benefit to the respondents, M/s. Southern Sulphates and Chemicals (Pvt) Ltd. The judgment clarified the distinction between assessment and calculation errors, emphasizing the applicability of Section 154 for rectification of such mistakes in customs duty calculations.
|
