Provisional customs deposit and refund limitation rejected where later valuation order accepted transaction value and required finalisation.

Imports from related persons were subjected to a 1% Extra Duty Deposit pending valuation, and a later Special Valuation Branch order accepted the declared transaction value and required finalisation of the pending assessments. Retention of the deposit without adjustment was treated as inconsistent with that valuation order and the governing circulars. The limitation objection under Section 27 of the Customs Act was rejected because the deposit was linked to provisional assessment, and the record did not justify treating the matter as a final assessment for denying refund. The importer was entitled to finalisation in line with the earlier valuation order and to work out refund consequences in law.

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Issues: Whether the collection of 1% Extra Duty Deposit at the time of import, followed by the Special Valuation Branch order accepting transaction value, entitled the importer to refund and prevented rejection of the claim on limitation.

Analysis: The imports from related persons were initially subjected to 1% Extra Duty Deposit pending verification, and the later order accepted the declared transaction value and directed finalisation of pending assessments. In that setting, retention of the deposit without adjustment was held to be inconsistent with the later valuation order and the governing circulars. The limitation objection based on Section 27 of the Customs Act was not accepted, because the deposit was treated as linked to provisional assessment and the materials did not justify treating the matter as a final assessment for denying refund.

Conclusion: The objection based on limitation failed, and the importer was held entitled to have the assessment finalised in accordance with the earlier valuation order and to work out refund consequences in law.

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