Customs refund limitation runs from actual duty payment, and post-assessment adjustment applies only to erroneous or excess payment.

For refund claims under Section 27 of the Customs Act, limitation runs from the actual payment of duty unless that payment was made in pursuance of a later final assessment; on the facts, the refund claim was filed after the prescribed period and was therefore time-barred. The explanation relating to adjustment after final assessment applies only where the earlier duty payment is shown to be erroneous or excessive; here, the final assessment did not establish any such error or excess, so that explanation did not assist the claimants. The rejection of refund was upheld and the challenge failed.

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Issues: (i) Whether the refund application was barred by limitation under Section 27 of the Customs Act, 1962. (ii) Whether the explanation to Section 27 applied where the duty paid earlier was neither shown to be erroneous nor in excess on final assessment.

Issue (i): Whether the refund application was barred by limitation under Section 27 of the Customs Act, 1962.

Analysis: The relevant date for limitation was the date of payment of duty, not the date of final assessment, because the payment had not been made in pursuance of the later final assessment. Since duty had been paid earlier and the refund claim was filed after the prescribed period, the claim was time-barred.

Conclusion: The refund application was barred by limitation and was rightly rejected.

Issue (ii): Whether the explanation to Section 27 applied where the duty paid earlier was neither shown to be erroneous nor in excess on final assessment.

Analysis: The final assessment did not indicate that the earlier payment of duty was erroneous or excessive. The explanation dealing with adjustment after final assessment was therefore inapplicable on the facts found.

Conclusion: The explanation to Section 27 did not assist the petitioners.

Final Conclusion: The challenge to rejection of the refund claim failed, and the petition was dismissed.

Ratio Decidendi: For refund claims under Section 27 of the Customs Act, 1962, limitation runs from the actual payment of duty unless the payment was made in pursuance of a final assessment, and the provision relating to adjustment after final assessment applies only where the earlier payment is shown to be erroneous or excessive.

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