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Refund on Extra Duty Deposit should be automatic under the Customs Act

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Refund on Extra Duty Deposit should be automatic under the Customs Act
CA Bimal Jain By: CA Bimal Jain
September 7, 2022
All Articles by: CA Bimal Jain       View Profile
  • Contents

The CESTAT, Ahmedabad in the matter of CHINA STEEL CORPORATION INDIA PVT LTD VERSUS C.C. –AHMEDABAD [2022 (7) TMI 1128 - CESTAT AHMEDABAD] has held that the assessee would be entitle to automatic refund of Extra Duty Deposit (“the EDD”) without filing of application for refund under Section 27 of the Customs Act, 1962 (“the Customs Act”).

Facts:

M/s China Steel Corporation India Pvt Ltd (“the Appellant”) has engaged in import of Silicon Electrical Steel of Cold Rolled Full Hard (“the Goods”) from a related entity. The issue of valuation was taken up by the Special Valuation Brance (“the SVB”). EDD of 1% is to be provided as a safeguard for revenue and accordingly the Appellant had deposited EDD. The assessment was finally approved and EDD was paid by the Appellant and became refundable to them. The order accepting the declared value was passed on February 04, 2016 and refund claim was filed on January 24 , 2018. The Show Cause Notice (“the SCN”) was issued seeking to reject refund claim on the grounds of limitation. Aggrieved by such rejection, the Appellant filed the present appeal.

Appellant’s Contention:

  • Such rejection was non-speaking and passed without application of mind.

Respondent’s Contention:

  •  The assessment in the instant case was provisional till the same was finalised after the report of SVB was received. The assessment was finalized on receipt of the report of SVB.
  • The decision of Hon’ble High Court of Bombay in Bussa’s Overseas, the provision under Section 27 of the  Customs Act are attracted.

Issue:

  • Whether the Appellant is entitled to get refund of EDD paid by them during the assessment period?

Held:

The CESTAT, Ahmedabad in CHINA STEEL CORPORATION INDIA PVT LTD VERSUS C.C. –AHMEDABAD [2022 (7) TMI 1128 - CESTAT AHMEDABAD] has held as under:

(Author can be reached at info@a2ztaxcorp.com)

 

By: CA Bimal Jain - September 7, 2022

 

 

 

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