2013 (9) TMI 66 - AT - Customs

Tribunal grants appeal for amendment request and refund assessment under Customs Act

The tribunal allowed the appeal, remanding the case for reconsideration of the appellant's amendment request under Section 149 of the Customs Act, 1962, ... Amendment of bill of entry – refund of excess duty - The assessee noticed the mistake as to not filing of the freight bill – they furnished the freight bill for the transaction and sought amendment of the Bill of Entry u/s 149 – they filed a refund claim for the excess duty paid - refund claim was rejected on the ground that the assessee did not challenge the assessment - Held that:- The revenue should allowed the amendment of the Bill of Entry u/s 149 - the only condition required to be satisfied for availing the provisions of Section 149 was that the documentary evidence on the basis of which the amendment was sought, should be in existence when the goods were cleared – Powers of discretion u/s 149 had been provided to the Customs Officers to allow amendments in genuine cases - it was evident that the assessee’s case was a genuine one. There was a genuine error committed by the assessee in not filing the freight bill at the time of filing of the Bill of Entry - When the error was noticed, immediately thereafter, the assessee took action to rectify the mistake by making an application u/s 149 along with documentary evidence in support of the claim for actual freight - there was enough justification for the proper officer to exercise the power u/s 149 - Powers are given to the officers to sub-serve justice and not to deny them – matter remanded back – decided in favour of assessee. Issues:1. Whether the appellant is entitled to a refund claim for excess duty paid due to a mistake in the Bill of Entry under the EPCG scheme.2. Whether the appellant's request for amendment of the Bill of Entry under Section 149 of the Customs Act, 1962 should be allowed.Analysis:1. The appellant filed a Bill of Entry for clearance of goods under the EPCG scheme without submitting the freight bill, resulting in the assessment of duty based on an assumed freight value. Upon realizing the error, the appellant submitted the freight bill and sought an amendment under Section 149 for a refund of the excess duty paid. The refund claim was rejected by the department, citing failure to challenge the initial assessment. The appellant contended that the delay in decision-making by the department caused their loss and requested the amendment under Section 149 to be allowed for the refund claim. The lower appellate authority upheld the rejection, leading to the appeal before the tribunal.2. The appellant argued that they had submitted the freight bill to the Customs House Agent (CHA) at the time of filing the Bill of Entry, but an error by the CHA led to non-submission of the bill. The appellant invoked the RTI Act to track the progress of their amendment request under Section 149. The department's notings revealed delays and conflicting opinions on whether to treat the case as an amendment or a refund claim. The appellant's submissions, supported by documentary evidence, indicated a genuine mistake rectified promptly. The Revenue cited precedents to justify rejecting the amendment request under Section 149 due to re-quantification of duty and clerical errors by the assessee.3. The tribunal analyzed the provisions of Section 149, emphasizing the requirement for existing documentary evidence at the time of goods clearance. The appellant's submission of the freight invoice post-clearance but within two weeks of filing the Bill of Entry satisfied this condition. The tribunal noted the discretionary power granted to Customs Officers under Section 149 for amendments in genuine cases. Despite superior directives to consider the appellant's letter as a refund application, the lower authority denied relief. Distinguishing the cited precedents, the tribunal found the appellant's case warranted amendment under Section 149 for justice and relief, remanding the matter for proper consideration and refund determination in accordance with the law.In conclusion, the tribunal allowed the appeal by remanding the case to the adjudicating authority for reconsideration of the appellant's amendment request under Section 149 and subsequent refund claim assessment.