Refund limitation for provisional customs duty runs from final assessment adjustment, not provisional payment.

Refund limitation under the Customs Act, 1962 does not run from provisional duty payment where assessment remains provisional. The applicable period for a refund claim is computed from adjustment of duty after final assessment, as reflected in the statutory explanation to Section 27 read with Section 18. Because the authorities had not verified whether a final assessment had been made, rejection of the refund claim as time-barred was not justified. Verification of the assessment status was required before limitation could be applied.

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Issues: Whether a refund claim was barred by limitation when the duty had been paid provisionally and no final assessment had yet been made.

Analysis: The dispute concerned the application of the limitation period under Section 27 of the Customs Act, 1962. The relevant explanation provides that, where duty is paid provisionally under Section 18 of the Customs Act, 1962, the period of six months is to be computed from the date of adjustment of duty after final assessment. On the facts placed before the Tribunal, the authorities had not verified whether there had been any final assessment or whether the assessment remained provisional. In the absence of a final assessment, rejection of the refund claim as time-barred was not justified.

Conclusion: The refund claim was not barred by limitation if the assessment was provisional and no final assessment had been made; the matter required verification by the adjudicating authority.

Ratio Decidendi: For duty paid provisionally, limitation for refund under Section 27 of the Customs Act, 1962 runs from adjustment after final assessment, not from the provisional payment itself.

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