Customs refund limitation runs from communication of final assessment, making the refund claim timely.

Under Section 27(1B)(c) of the Customs Act, limitation for a refund claim arising from finalisation of assessment runs from the date the final assessment is communicated to the claimant, not merely from the date it is internally completed. In this case, the final assessment was communicated later, so the refund application filed thereafter was within time. The rejection of the refund on limitation was set aside and refund was restored.

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Issues: Whether the refund claim filed under Section 27(1B)(c) of the Customs Act, 1962 was barred by limitation, and from which date the limitation period was to be computed when the final assessment order had been communicated later.

Analysis: The refund claim arose from excess duty paid on provisional assessment of ship stores. Although the Bill of Entry was finally assessed on 15.01.2013, the communication of finalization was issued to the appellant only on 03.07.2014. The limitation for refund under Section 27(1B)(c) was therefore held to run from the date of communication of the final assessment, not merely from the date on which final assessment was completed internally.

Conclusion: The refund application filed on 10.07.2014 was within time and was not barred by limitation.

Final Conclusion: The order rejecting the refund on limitation was set aside and the sanction of refund was restored.

Ratio Decidendi: For a refund claim arising on finalisation of assessment, limitation under Section 27(1B)(c) of the Customs Act, 1962 is computed from the date on which the final assessment is communicated to the claimant.

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