2006 (11) TMI 416 - AT - Customs

Tribunal denies refund claim for CESS on export of peanut butter, citing statutory time limits

The Tribunal upheld the impugned order, rejecting the appellant's refund claim for CESS paid on export of peanut butter due to exceeding the prescribed ... Refund of Cess - Limitation Appellant paid CESS on export of peanut butter (1-4-2001 to 26-12-2004) and filed a refund application on 5-3-2005; part refund was allowed and part rejected on the ground of limitation. Appellant relied on the Limitation Act and authorities (including Salonah Tea Co., Indo-Nippon Chemical, Heavy Engg. Corpn.) arguing that, because payment arose from mutual ignorance of law and that 'collection of CESS has taken without the authority of law,' the three-year Limitation Act period should apply. Revenue contended statutory officers 'could not entertain a claim beyond the statutory limit' and that the Tribunal, as a statutory authority, 'is bound by the limitation fixed under the Customs Act.' The tribunal applied precedent holding refunds beyond the time prescribed in the concerned Act are not permissible and therefore affirmed the impugned order. Appeal rejected.