Provisional customs assessment extends refund limitation from final adjustment, and the Section 27 explanation also covers short-landing claims.

Where a customs refund claim arises from a provisional assessment, the six-month limitation under Section 27 of the Customs Act is computed from the date of adjustment of duty after final assessment, not from the original payment date. The Explanation to Section 27(1) is stated to apply beyond disputed assessments and to cover short-landing claims as well, because the final duty incidence and refundable amount remain unsettled until reconciliation and final assessment are completed. On that basis, the refund claim is treated as not time-barred and is to be reconsidered by the original adjudicating authority after hearing the applicants.

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Issues: Whether the refund claim was barred by limitation under Section 27 of the Customs Act, 1962, and whether the benefit of the Explanation to Section 27(1) applied where the assessment was provisional, including in a short-landing claim.

Analysis: The bill of entry showed a contract entry and endorsement of contract particulars, supporting the finding that the assessment was provisional. Where assessment is provisional, the six-month period under Section 27 is computed from the date of adjustment of duty after final assessment, as stated in the Explanation to Section 27(1). The benefit of that Explanation is not confined to disputed assessments and extends to short-landing claims, because the duty incidence and refundable amount are not finally known until reconciliation and final assessment are completed.

Conclusion: The refund claim was held not to be time-barred, and the matter was sent back for reconsideration by the original adjudicating authority after hearing the applicants.

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