Assessment variation required before refund of excess customs duty; exemption claim under the correct notification entry had to be examined on merits.

An assessee who paid excess customs duty after citing an incorrect serial number in Notification No. 21/2002-Cus. was plainly aggrieved by the assessment, as the appeal had been filed before the Commissioner (Appeals). Refund of excess duty could be granted only after variation of the assessment, so the lower appellate authority was required to examine the exemption claim under the correct notification entry and decide entitlement on merits. The order was set aside and the matter remanded for fresh adjudication, with the assessee succeeding on the preliminary grievance issue.

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Issues: Whether the lower appellate authority erred in holding that the assessee was not aggrieved by the assessment and in failing to examine the claim for exemption under Notification No. 21/2002-Cus. while considering refund of excess duty.

Analysis: The assessee had paid excess duty due to an incorrect declaration of the relevant serial number in Notification No. 21/2002-Cus. and sought correction through appeal. The record showed that the appeal had been filed before the Commissioner of Customs (Appeals), so the assessee was plainly aggrieved by the assessment. The settled legal position required variation of the assessment before refund of excess duty could be granted. The lower appellate authority was therefore required to examine the grievance and determine whether the assessee was entitled to exemption under the correct serial number of the notification.

Conclusion: The order of the lower appellate authority was set aside and the matter was remanded for fresh decision on merits. The assessee succeeded.

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