Excess customs duty refund in writ jurisdiction allowed despite limitation where clerical mistake and no passing on were shown.

Excess customs duty collected due to an admitted clerical mistake was held refundable in writ jurisdiction under Article 226, notwithstanding the limitation period for refund claims under Section 27 of the Customs Act, 1962. The Court accepted the affidavit that the imported goods were used by the company itself and that the duty burden had not been passed on, and declined to send the matter for fresh inquiry in view of the long lapse of time and the small amount involved. Refund was therefore directed.

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Issues: Whether excess customs duty paid on account of a clerical mistake was refundable in writ jurisdiction despite the refund claim being beyond the statutory period under Section 27 of the Customs Act, 1962, and whether further investigation into passing on of the duty burden to third parties was necessary.

Analysis: The duty was paid on a factually incorrect declaration, and the Department did not dispute that excess duty had in fact been collected. Although refund claims under Section 27 of the Customs Act, 1962 are ordinarily governed by limitation, the Court held that this was a fit case to exercise writ jurisdiction under Article 226 of the Constitution of India. The Court relied on the affidavit stating that the imported goods were used by the company itself and that the burden had not been passed on. It also considered the long lapse of time and the small amount involved as reasons against remitting the matter for fresh inquiry.

Conclusion: The excess customs duty was ordered to be refunded to the assessee.

Final Conclusion: The petition was allowed and the respondents were directed to return the excess duty amount to the company.

Ratio Decidendi: Where excess customs duty has been collected due to an admitted factual mistake and the material before the Court indicates that the burden was not passed on, the Court may grant refund in writ jurisdiction notwithstanding the statutory refund limitation.

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