Refund on erroneous duty payment for goods re-exported upheld on documentary proof and customs verification.

Refund of duty paid in error on goods wrongly shipped and later re-exported was considered maintainable where the documentary record, including the re-export permission letter and the Customs verification report, supported the claim. The appellate authority accepted that the duty had been paid in advance by mistake and that the goods were subsequently re-exported. On those facts, the Tribunal found the rejection of refund unjustified and upheld the allowance of the claim, leaving the departmental challenge unsuccessful.

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Issues: Whether the refund claim arising from erroneous advance payment of duty on goods wrongly shipped and re-exported was liable to be rejected.

Analysis: The Commissioner (Appeals) had relied on the documentary record, including the letter permitting re-export and the verification report of the Customs officer, to hold that the duty had been paid in error in advance and that the goods were subsequently re-exported. The Tribunal found that the issue had been properly analysed and that the refusal to grant refund was not justified on the facts placed before the appellate authority.

Conclusion: The refund claim was held to be maintainable and the departmental challenge failed.

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