Customs refund limitation does not apply where excess payment is a government deposit, not duty.

Excess customs amount collected on a second set of invoices for goods that were never imported was treated as a deposit with the Government, not as duty. On that basis, the limitation for refund of duty under Section 27 of the Customs Act, 1962 did not apply. The refund claim was therefore not time-barred and had to be reconsidered on merits.

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Issues: Whether a refund claim arising from duty paid twice on the same goods, where the second set of invoices related to goods not actually imported, was barred by limitation under Section 27 of the Customs Act, 1962.

Analysis: The duty had been charged on two sets of invoices though only one set of goods was imported. The excess amount collected on the second set of invoices related to goods that were non-existent and had never been imported. In such a case, the amount retained by the Customs authorities was treated as a deposit with the Government and not as duty. On that footing, the limitation prescribed for refund of duty under Section 27 did not apply.

Conclusion: The refund claim was not time-barred under Section 27 of the Customs Act, 1962, and the matter was required to be reconsidered on merits.

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