Refund claim on self-assessed import cannot be rejected solely for lack of separate assessment challenge, tribunal says.

A refund claim arising from duty paid on a self-assessed import could not be rejected merely because the assessment had not been separately challenged where the assessee had already carried the matter in appeal. The tribunal held that the appellate authority was wrong to decline jurisdiction on that basis, particularly in light of the binding departmental circular contemplated adjudication of such refund claims after challenge to assessment. The objection to maintainability was therefore rejected, the appellate order was set aside, and the matter was remanded for fresh decision on merits after considering the documents produced by the assessee.

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Issues: Whether a refund claim arising from duty paid on a self-assessed import can be rejected on the ground that the assessment was not challenged, and whether the appellate authority can decline jurisdiction on that basis.

Analysis: The rejection rested on the view that once the assessment was accepted, the assessee could not question it and that refund was not maintainable without first getting the assessment modified. The order also proceeded on the premise that the appellate authority lacked jurisdiction after acceptance of assessment. The appellate tribunal found this approach contrary to the binding departmental circular, which itself acknowledged the requirement that assessment must be challenged for refund purposes and contemplated adjudication on that basis. Since the assessee had carried the matter in appeal, the refusal to entertain the claim on jurisdictional grounds was held to be erroneous.

Conclusion: The objection to maintainability and jurisdiction was rejected, the appellate order was set aside, and the matter was remanded for decision on merits after considering the documents produced by the assessee.

Final Conclusion: The assessee obtained a remand for fresh consideration on merits, with the earlier rejection based on acceptance of assessment being displaced.

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