2010 (6) TMI 528 - AT - Customs

Refund on short shipped - The invoice covered two varieties of mother boards - Bill of Entry was filed by the assessees for both types of mother boards and duty payable on them was paid - The goods in this case were not subject to examination and the assessees noticed only one variety of the mother board had landed and there was a short shipment of the entire quantity of the second variety of mother board - The authorities rejected their claim for refund on the ground that there was no examination of the goods and from the airway bill the number of packages is same as that mentioned in the Bill of Entry and as contended by the appellants - It is clear from the documentary evidence that the goods in the packing list with only one variety of mother board were shipped - the importer has been able to produce contemporaneous documents to bring out the fact of short shipment - Held that the importer is entitled to refund on short shipped mother boards - Hence set aside the impugned order and allow the appeal.

Summary

Issues:
Claim for refund of duty paid on short shipped import consignments.

Analysis:
The judgment revolves around the challenge to the rejection of the assessee's claim for a refund of duty paid on short shipped import consignments. The case involved two varieties of motherboards, MB SA 509 003 and MB 4407.001. The assessees filed a Bill of Entry for both types, paid the duty, but the airway bill and packing list covered only one variety, MB SA 509 003. The authorities rejected the refund claim citing no examination of goods, discrepancies in package numbers, and matching gross weights between documents. However, it was evident from the documentary evidence that only one variety of motherboards was shipped, indicating a short shipment of the second variety. The lower appellate authority's reliance on case law stating no short shipment after goods clearance was deemed distinguishable as the importer provided contemporaneous documents proving the short shipment. Consequently, the judgment favored the importer, granting a refund for the short shipped motherboards (MB 4407.001) by setting aside the impugned order and allowing the appeal.

This detailed analysis of the judgment highlights the key issues, arguments, and conclusions made by the tribunal. The decision was based on the evidence presented, the discrepancies in documentation, and the importer's ability to establish the occurrence of a short shipment through contemporaneous documents. The judgment emphasizes the importance of documentary evidence in proving claims related to import consignments and duty refunds.