Refund claim filing post final assessment not required pre-2006 ruling.

The court held that the requirement of filing a refund claim under Section 27 of the Customs Act for a specific amount post final assessment was incorrect. Prior to the introduction of this requirement in 2006, the importer/exporter was entitled to a refund after final assessment without filing a claim. The court cited relevant decisions to support this position and allowed the appeal, ordering the refund amount of Rs. 26,53,440/- to be paid to the appellants.

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Fourteen bills of entry assessed finally on 24-4-2006 resulted in an admitted refund entitlement of Rs.26,53,440/-. Central issue: whether the Assistant Commissioner was correct in requiring filing of a refund claim under Section 27 of the Customs Act, or whether the refund should be granted suo motu after final assessment. The panel held that prior to the July 13, 2006 insertion of Section 27 into Section 18, Section 18(2) provided that "the importer or the exporter of the goods shall pay the deficiency or be entitled to the refund after the final assessment of the duty." Because Section 18(2) was pari materia with erstwhile Rule 9(B) of the Central Excise Rules, the revenue should have sanctioned the refund without a formal claim. The revenue's reliance on the "principle of unjust enrichment" to mandate a Section 27 claim was rejected. Reliance was placed on precedents including Mafatlal Industries Ltd., Hindustan Lever Ltd., Sreeram Pistons & Rings Ltd., and TVS Suzuki Ltd. Result: appeal allowed and the admitted refund ordered to be paid.

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