2019 (1) TMI 1788 - AT - Customs

Tribunal remands case for refund claim processing, separate from assessment challenge. Legal principles emphasized.

M/s. SGM ENTERPRISES Versus COMMISSIONER OF CUSTOMS [SEAPORT-EXPORTS]

The Tribunal allowed the appeal by remanding the case to the adjudicating authority for processing the refund claim of excess duty paid by the importer ... Refund of the excess duty paid - assessment not challenged before claiming the refund of excess duty - HELD THAT:- The issue decided in the case of AMAN MEDICAL PRODUCTS LTD. VERSUS COMMISSIONER OF CUSTOMS, DELHI [2009 (9) TMI 41 - DELHI HIGH COURT] where it was held that the refund claim of the appellant was maintainable under Section 27 of the Customs Act and the non-filing of the appeal against the assessed bill of entry does not deprive the appellant to file its claim for refund under Section 27 of the Customs Act, 1962. Appeal is remanded to the adjudicating authority, who is directed to process the refund claim on merits - appeal allowed by way of remand. Issues:- Eligibility for refund of excess duty without challenging assessmentAnalysis:The case involved the appellant, an importer, who filed a bill of entry for importing 'Tetracycline Hydrochloride' and paid excess duty of Rs. 59,957 due to failure to claim a notification benefit. The refund claim for the excess duty was rejected by the adjudicating authority and the Commissioner (Appeals) upheld the rejection. The primary issue in question was whether the appellant could claim a refund of excess duty without challenging the assessment.The appellant argued, through counsel Shri A.K. Jayaraj, that challenging the assessment was not a prerequisite for claiming a refund of excess duty. The counsel cited precedents, including a decision of the Hon'ble Delhi High Court and a Tribunal decision, to support this argument. On the other hand, the Authorized Representative for the Revenue, Shri Jagan Babu, supported the findings of the impugned order.After hearing both sides, the Tribunal examined whether the appellant was eligible for a refund of the excess duty paid without challenging the assessment. The Tribunal referred to the decisions cited by the appellant's counsel and concluded that the adjudicating authority should have considered the refund claim on its merits. Consequently, the Tribunal set aside the impugned order and remanded the appeal to the adjudicating authority. The adjudicating authority was directed to process the refund claim on merits. The appeal was allowed by way of remand with consequential reliefs, if any.In summary, the Tribunal held that the appellant was eligible for a refund of the excess duty paid without the necessity of challenging the assessment. The decision was based on established legal principles and precedents cited during the proceedings. The Tribunal's ruling emphasized the importance of considering refund claims on their merits, irrespective of the challenge to the assessment.