1993 (10) TMI 186 - AT - Customs

Tribunal Upholds Rejection of Late Refund Claim, Emphasizing Time Limits in Customs Act

SHEONATH PRASAD SURAJ PRASAD Versus COLLECTOR OF CUSTOMS, CALCUTTA

The Tribunal upheld the rejection of a refund claim, emphasizing the importance of filing claims within the prescribed six-month period as per Section 27 ... Rectification of Mistake Issues:1. Rectification of mistake in Tribunal's order regarding refund application rejection.2. Consideration of refund claim and time limitation for filing.3. Presumption of receipt of refund application and its date of receipt.4. Applicability of duty payment on short-shipped goods under Customs Act.5. Refund claim period limitation under Section 27 of the Customs Act.6. Precedents and judgments on refund claims and duty payments.7. Tribunal's adherence to statutory provisions and rejection of late refund claims.8. Interpretation of Section 17(4) of the Customs Act for reassessment of duty.Analysis:1. The judgment concerns an Application for rectification of a mistake in the Tribunal's order rejecting a refund claim. The refund application was initially rejected as time-barred by the Assistant Collector of Customs and subsequently by the Appellate Collector of Customs. The Tribunal, in Order No. 307/Cal/89, upheld the rejection of the appeal based on the time limitation issue.2. The Tribunal observed that the endorsement on the Bill of Entry did not constitute a refund claim, emphasizing the need for a separate and specific refund claim. Despite the applicants filing a refund claim on 5-7-1979, it was received by Customs Officers on 13-9-1979, beyond the six-month period, leading to the rejection of the appeal.3. The applicants contended that the refund application, dated 15-7-1979 and sent by certificate of posting, should be presumed to have reached the Customs House in due course. However, the Customs Officers admitted receiving it on 13-9-1979, highlighting that the presumption under Section 114 of the Evidence Act does not guarantee timely receipt.4. The argument regarding duty payment on short-shipped goods under Section 12 of the Customs Act was raised, asserting that since the goods were not received from foreign suppliers, the duty payment should not be considered as duty. Citing various judgments, the advocate sought to distinguish the case from the provisions of Section 27 of the Customs Act.5. The judgment emphasized the importance of filing refund claims within six months, as mandated by Section 27 of the Customs Act. Referring to relevant precedents, including the Supreme Court decision in Miles India Ltd. v. Collector, it reiterated the statutory limitation on refund claims.6. Various judgments, including Indian Cable Co. Ltd. v. CEGAT and Mineral & Metal Trading Corpn. of India Ltd. v. CEGAT, were cited to establish the Tribunal's obligation to adhere to statutory provisions, particularly in rejecting refund claims beyond the prescribed time limit.7. The Tribunal, as a creature of statute, is bound by the provisions of the Customs Act and cannot entertain refund claims filed after the limitation period under Section 27(1). The judgment highlighted the binding nature of decisions by the Calcutta High Court on such matters.8. The interpretation of Section 17(4) of the Customs Act was discussed concerning reassessment of duty if any statement in the entry is found to be untrue. The applicants' endorsement on the Bill of Entry did not constitute a refund claim, and the delay in filing the actual refund claim could not be condoned under statutory provisions.This comprehensive analysis covers the key issues addressed in the judgment, highlighting the legal arguments, statutory provisions, and precedents considered by the Tribunal in rejecting the refund claim.