2023 (9) TMI 1270 - AT - Customs

Tax Appeal Success: Export Duty Rejected, Refund Claims Upheld, Compliance Emphasized

The Commissioner (Appeals) Ahmedabad allowed the appeal of the respondent-assessee, emphasizing compliance with legal provisions and High Court ... Refund of Export duty paid - rejection of refund claim of the respondent-assessee saying that claimant was neither the party in the case of proceedings before the Supreme Court nor the assessment order of the concerned bills of export was challenged - HELD THAT:- The learned Commissioner (Appeals) has already considered all the submissions which have been made by the appellant-department in their appeals here. It is opined that only review petition being pending before the Hon’ble Apex Court cannot be the reason to set-aside the impugned order-in-appeal. In view of the fact that the jurisdictional High Court’s order has neither been set-aside nor stayed by the Hon’ble Apex Court and since the Hon’ble Gujarat High Court’s order as of today holds good. There is no illegality in the impugned order-in-appeal passed by the Commissioner (Appeals) and therefore, appeals are without any merit - Appeal dismissed. Issues involved:The issues involved in this judgment include the payment of export duty on iron and steel products supplied to a Special Economic Zone (SEZ) in India, the challenge to Notification No. 66/2008 dated 10.05.2008 before the Hon'ble Gujarat High Court, rejection of refund claims by the Dy. Commissioner Customs, appeal before the Commissioner (Appeals) Ahmedabad, and subsequent rejection of the department's appeal by the Commissioner (Appeals).Payment of Export Duty Issue:The respondent-assessee, a SEZ unit, received iron and steel products from a Domestic Tariff Area (DTA) unit and paid export duty on these supplies as per Notification No. 66/2008 dated 10.05.2008 'under protest.' The issue arose when the department challenged the export duty payment, leading to a series of legal proceedings culminating in the rejection of refund claims by the Dy. Commissioner Customs. However, the Commissioner (Appeals) Ahmedabad later allowed the appeal of the respondent-assessee, emphasizing compliance with legal provisions and High Court pronouncements on the matter.Challenge to Notification Issue:The challenge to Notification No. 66/2008 dated 10.05.2008 was initially made before the Hon'ble Gujarat High Court, which held that the levy of export duty on goods supplied from DTA to SEZ was not justified. Despite subsequent appeals by the Revenue to the Hon'ble Supreme Court, the dismissal of the Special Leave Petition led to the filing of refund claims by the respondent-assessee. The rejection of these claims by the Dy. Commissioner Customs was based on the claimant not being a party in the previous legal proceedings, leading to further appeals and reviews.Refund Claims Rejection Issue:The rejection of the refund claims by the Dy. Commissioner Customs was based on the claimant not being a party in the previous legal proceedings before the Hon'ble Supreme Court and Hon'ble Gujarat High Court. The jurisdictional Dy. Commissioner's rejection was challenged by the respondent-assessee, leading to appeals before the Commissioner (Appeals) Ahmedabad, who ultimately sanctioned the refund claims citing compliance with the Customs Act, 1962, and unjust enrichment provisions.Commissioner (Appeals) Decision Issue:The Commissioner (Appeals) Ahmedabad's decision to reject the department's appeal was based on the contention that the jurisdictional High Court's order had not been set aside or stayed by the Hon'ble Apex Court. The Commissioner (Appeals) emphasized that the mere pendency of a review petition before the Hon'ble Apex Court could not be a reason to set aside the refund sanction order, as the High Court's order remained valid. This led to the dismissal of the department's appeals as lacking merit.Separate Judgment by Judges:No separate judgment was delivered by the judges in this case.