2020 (3) TMI 765 - AT - Customs

Appellants' Refund Claims Not Time-Barred, Remanded for Further Adjudication

M/s Garg Impex Versus Commissioner of Customs ICD New Delhi

The Tribunal held that the appellants' refund claims were not time-barred as they were filed within the prescribed period from the final assessment of ... Refund of SAD - N/N. 102/2007- Cus dt. 14.09.2007 - Time limitation - HELD THAT:- The date of communication of the finalization of the assessment of bills of entry are not in dispute and refund claims filed by the appellants are within time from the date of communication of final assessment of bills of entry. Hon’ble High Court in the case of PIONEER INDIA ELECTRONICS (P) LTD. VERSUS UNION OF INDIA & ANOTHER [2013 (9) TMI 705 - DELHI HIGH COURT] has held that the refund claim can be filed within the period of one year or six months, as the case may be, of the final assessment as stipulated by Explanation II to Section 27 of the Act or within the enlarged period of one year from the date provisional release as stipulated by Notification No. 93/2008-Cus dt. 01.08.2008, which means the appellants were at the liberty to file the refund claim within one year from the date of communication of the order of the finalization of the assessment bills of entry. Admittedly, the refund claims have been filed by the appellants within one year from the date of communication of the order of the finalization of the assessment bills of entry. Therefore, the refund claims filed by the appellants are within time. The matter remanded back to the adjudicating authority to decide the issue on merits within one month of receipt of this order - appeal allowed by way of remand. Issues:1. Rejection of refund claims as time-barred under Notification No. 102/2007-Cus.2. Interpretation of the time limit for filing refund claims in cases of final assessment of bills of entry.3. Applicability of the decision of Hon'ble Delhi High Court in Pioneer India Electronics P Ltd vs. U.O.I.Analysis:Issue 1:The appellants appealed against the rejection of their refund claims under Notification No. 102/2007-Cus, which were deemed time-barred. The refund claims were filed beyond the one-year limitation period from the final assessment of bills of entry, leading to their rejection.Issue 2:The appellants argued that their refund claims were timely filed concerning the final assessment of bills of entry. For one bill of entry, the Commissioner (Appeals) confirmed that the refund claim was within the one-year limit from the communication date of the final assessment. Regarding other bills of entry, the Tribunal's decision on challenging the valuation indicated that the refund claims were filed within the allowable time frame. The Tribunal found that the refund claims should be considered on their merits, as they were not filed beyond the one-year period from the finalization of bills of entry.Issue 3:The Revenue cited the decision of the Hon'ble Delhi High Court in Pioneer India Electronics P Ltd vs. U.O.I., emphasizing the requirement to file refund claims within one year from the provisional assessment of bills of entry or from the duty payment date. However, the Tribunal analyzed the High Court's decision and determined that refund claims could be filed within one year from the final assessment or provisional release date, as per Notification No. 93/2008-Cus. The Tribunal concluded that the appellants' refund claims were timely filed within the permissible period and remanded the matter to the adjudicating authority for a decision on merits within one month.In conclusion, the Tribunal held that the appellants' refund claims were not time-barred, as they were filed within the prescribed period from the final assessment of bills of entry. The matter was remanded for further adjudication on the merits by the adjudicating authority within a specified timeline.