Customs refund law: Section 26A does not bar refund where goods were never cleared for home consumption.

Section 26A of the Customs Act applies only where imported goods have been cleared for home consumption and are later exported in the prescribed circumstances; where the goods were not cleared for home consumption, that bar did not apply. The refund claim was found to be within limitation under Section 27, and unjust enrichment was held inapplicable on the facts because the goods were never cleared for home consumption. Interest on delayed refund was also held payable under the statutory scheme after the prescribed period from filing of the refund application. The refund was therefore admissible and consequential relief followed.

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Issues: Whether the refund of customs duty was barred under Section 26A of the Customs Act, 1962 when the imported goods were not cleared for home consumption, and whether the appellant was entitled to refund with interest under Section 27A of the Customs Act, 1962.

Analysis: Section 26A applies where imported goods have been cleared for home consumption and are thereafter exported in the circumstances contemplated by that provision. In the present case, the goods were not cleared for home consumption at all; they were found to be misdeclared, re-exported, and the appellant had already paid redemption fine and penalty. The refund claim was filed within limitation under Section 27 of the Customs Act, 1962, and since the goods were not cleared for home consumption, the doctrine of unjust enrichment was held inapplicable. The claim for interest on delayed refund was also accepted in view of the statutory scheme and the three-month period from the date of filing of the refund application.

Conclusion: The refund was held admissible, Section 26A was held inapplicable, and the appellant was held entitled to refund with interest on delayed payment.

Final Conclusion: The impugned order was set aside and the appeal was allowed with consequential relief, including interest.

Ratio Decidendi: Section 26A of the Customs Act, 1962 is attracted only where imported goods have been cleared for home consumption and later exported in the prescribed circumstances; where goods are not so cleared, refund cannot be denied on that basis and interest on delayed refund follows the statutory scheme.

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