2022 (9) TMI 754 - AT - Customs

Tribunal allows appeal, sets aside refund claim rejection under Customs Act. Limitation period starts from date of amendment.

Megamet Steels Private Limited Versus C.C. -Jamnagar (prev)

Megamet Steels Private Limited Versus C.C. -Jamnagar (prev) - TMI Issues:1. Refund claim rejected due to time limit under Section 27 of the Customs Act, 1962.Analysis:The case involved an appeal regarding the rejection of a refund claim by the adjudicating authority under Section 27 of the Customs Act, 1962. The appellant had filed bills of entry for import but could not lift the full quantity of goods, resulting in an excess payment of duty. The appellant sought amendment of quantity and duty under Section 149 of the Customs Act. The refund claim was rejected as it was filed after the one-year time limit. The Commissioner (Appeals) upheld the rejection, stating that the refund claim was filed after the prescribed time limit.The appellant argued that the period for refund should be calculated from the date of amendment of bills of entry, not from the date of payment, as the refund arises only after the amendment. The tribunal considered relevant judgments, including Keshari Steels Vs. Collector of Customs, and held that in cases of correction of errors, the one-year limitation under Section 27 does not apply. The tribunal agreed that the refund claim should be considered from the date of amendment in the bills of entry, not from the date of payment, as the refund arises only post-amendment.Therefore, the tribunal set aside the impugned order and allowed the appeals, concluding that the refund claim was filed within the time limit when calculated from the date of amendment in the bills of entry. The decision was based on the legal position that in cases of corrections or amendments, the limitation period should be reckoned from the date of correction, not the original payment date.