1976 (10) TMI 43 - SC - Customs

Refund Refund is not a case of short levy Writs of Certiorari Mandamus and Prohibition Revision Relevant date Connotation of

Summary

Issues:
1. Interpretation of Sections 28, 131(3), and 131(5) of the Customs Act, 1962 regarding the limitation period for suo motu revision by the Central Government.
2. Validity of a notice issued under Section 131(3) of the Act for revision of an order of refund.
3. Applicability of the principles of non-levy, short-levy, and erroneous refund of duty in the context of the case.
4. Jurisdiction of the Central Government to annul or modify orders under Sections 128 and 130 of the Act.

Detailed Analysis:
1. The appellant, a manufacturer of dry battery cells, received a consignment of manganese dioxide and was initially levied duty under Tariff Item 28. After appeal and revision, the goods were assessed under Tariff Item 26, and a refund of duty was ordered. The appellant sought a refund but later received a notice under Section 131(3) of the Customs Act, 1962 for revision of the refund order, leading to a legal challenge based on the limitation period prescribed in Section 131(5) for non-levy or short-levy of duty.

2. The appellant contended that the power of suo motu revision under Section 131(3) should be exercised within the limitation period specified in Section 131(5) of the Act. The Delhi High Court directed the Central Government to hear the appellant's objections and make a decision within three months, emphasizing that any refund should be processed within two months from the decision date. The High Court's decision was based on the interpretation of Sections 28, 131(3), and 131(5) of the Act.

3. The appellant argued that the notice for revision issued under Section 131(3) was time-barred as it exceeded the six-month limitation period from the relevant date of the refund order. The court analyzed the provisions of Section 28, distinguishing between non-levy, short-levy, and erroneous refund of duty, and concluded that the limitation for erroneous refund would be from the actual refund date, not the order date.

4. The Central Government's power to annul or modify orders under Sections 128 and 130 of the Act was examined in the context of the appellant's challenge to the notice issued under Section 131(3). The court clarified that the limitations specified in Section 131(5) for non-levy or short-levy did not apply to erroneous refund cases, as they were distinct categories of errors in duty assessment.

5. The court dismissed the appellant's plea for writs of certiorari and mandamus, stating that there was no judicial or quasi-judicial order to attract certiorari, and no specific duty or act to warrant a mandamus under the Act. The Central Government was directed to hear the appeal on merits without the limitation bar, and if the refund order was upheld, payment was to be made within two months from the decision date, with each party bearing their own costs.