2015 (10) TMI 2263 - HC - Customs

Court directs refund review by Customs Commissioner, stresses jurisdictional clarity in refund claims

M/s Medsource Ozone Biomedicals Pvt Ltd Versus The Commissioner of Customs, The Assistant Commissioner of Customs

The court set aside the impugned orders for refund disbursement due to jurisdictional issues and directed the second respondent to forward the refund ... Refund Claim pursuant to 2(c) of Notification No.102/2007-Cus. – Jurisdiction - Impugned orders were passed without giving an opportunity of hearing - No deficiency memo issued by 2nd Respondent informing that he had no jurisdiction to entertain refund claim - Files not transferred to Assistant Commissioner of Customs (Refunds) – Respondent contended that as per the notification jurisdictional Assistant Commissioner alone shall sanction and refund claim – Held That:- Delay in filing application is not on higher side and impugned orders be thereby quashed – 2nd Respondent directed to send application to Assistant Commissioner of Customs (Airport and Air Cargo) and petitioner shall also submit application himself along with copy of order within two weeks failing which respondent can pass appropriate orders – Decided conditionally in favour of assessee. Issues:Challenge to orders for refund disbursement and jurisdictional issues.Analysis:The petitioner, a Private Limited Company engaged in the manufacture of Vitro Diagnostics, imported various specialized equipment and materials from South Korea. The petitioner sought a refund of customs duties paid on these imports, which were subsequently sold locally. The petitioner applied for refunds, but the 2nd respondent rejected the claims citing jurisdictional issues. The petitioner contended that both the Assistant Commissioner of Customs House and Air Cargo Complex had concurrent jurisdiction over the ports and airports. The petitioner argued that the 2nd respondent should have issued a deficiency memo if lacking jurisdiction and transferred the files to the appropriate authority. Citing a relevant judgment, the petitioner emphasized the need for proper jurisdictional considerations in refund claims.The learned counsel for the petitioner highlighted that the Commissioner of Customs had concurrent jurisdiction, urging the court to quash the impugned orders. On the other hand, the standing counsel for the respondents pointed out the requirement for refund claims to be sanctioned by the jurisdictional Assistant Commissioner as per Notification No.102/2007-Cus. The court acknowledged the delayed filing of refund applications but deemed the delay reasonable. Consequently, the court set aside the impugned orders and directed the second respondent to forward the original refund applications to the Assistant Commissioner of Customs (Airport and Air Cargo). The petitioner was given a two-week window to provide copies of the applications to the Assistant Commissioner, who was instructed to review and decide on the claims within four weeks thereafter. Failure to comply would allow the respondent to take appropriate action.In conclusion, the court disposed of the writ petitions with the outlined directions, emphasizing the importance of jurisdictional clarity in refund claims and providing a procedural roadmap for the petitioner to pursue the refund process effectively.