Prospective limitation on customs refund claims cannot defeat entitlement where duty was paid before the amendment took effect.

Refund claims for additional duty of customs were governed by Notification No. 102/2007-Cus., which originally imposed no time limit. A later amendment by Notification No. 93/2008-Cus. introduced a one-year limitation from the date of payment, but that restriction could not be applied to duty already paid before 01.08.2008. The Tribunal treated the later limitation as prospective only and held that an after-enacted, more restrictive condition could not defeat refund entitlement arising from prior payments. The refund claims were therefore within time, and rejection on limitation was not justified.

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Issues: Whether the refund claims of additional duty of customs were barred by limitation under Notification No. 93/2008-Cus. when the duty had been paid before that notification came into force.

Analysis: The refund entitlement arose under Notification No. 102/2007-Cus., which originally did not prescribe any time limit. Notification No. 93/2008-Cus. introduced a limitation of one year from the date of payment of additional duty, but the duty in question had already been paid before 01.08.2008. The limitation period, therefore, could not be applied to payments made prior to the amendment. The Tribunal followed the earlier view that an oppressive condition introduced later would operate prospectively and would not defeat refund claims based on prior payment of duty.

Conclusion: The refund claims were held to be within time and the rejection on limitation was unjustified.

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