Customs refund classification depends on proof that the Section 27 plea was raised before the appellate authority.

Refund classification under Sections 27 and 26A of the Customs Act depends on whether the claimant had specifically raised the Section 27 basis before the Commissioner (Appeals). The notes state that the refund was treated under Section 26A after the claimant altered its position before the adjudicating authority, while the claimed subsequent Section 27 plea was unsupported by the appeal memorandum, grounds, or written submissions. The matter is to be remitted for verification of the prior pleadings; if a Section 27 plea is established, the refund must be considered on merits under that provision, otherwise only under Section 26A.

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Issues: Whether the refund claim should be considered under Section 27 of the Customs Act, 1962 rather than Section 26A of the Customs Act, 1962.

Analysis: The refund was treated by the adjudicating authority as a claim under Section 26A because the assessee had altered its stand before that authority. The assessee asserted that it had subsequently and specifically sought consideration under Section 27 before the Commissioner (Appeals), but did not produce the appeal memorandum, grounds, or written submissions to establish that plea despite being required to do so. The applicability of Section 27 could not be examined without verification of whether that contention was actually raised before the appellate authority.

Conclusion: The matter is remitted to the Commissioner (Appeals) to verify the assessee's prior pleadings; upon proof of a Section 27 plea, the refund claim must be adjudicated on merits under that provision, and otherwise it shall be considered under Section 26A alone.

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