Section 154 correction for arithmetical error allows customs duty refund without Section 27 limitation.

Section 154 of the Customs Act, 1962 operates independently of Section 27 where a refund claim arises from an arithmetical mistake in the bill of entry. The Tribunal held that an apparent error in the assessment figures could be corrected under Section 154 and the consequential excess duty refund granted without being barred by the limitation period applicable to Section 27, because Section 154 prescribes no such limitation. The refund order was therefore upheld and the Revenue's objection based on limitation failed.

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Issues: Whether refund of customs duty paid in excess due to an arithmetical mistake in the bill of entry could be granted under Section 154 of the Customs Act, 1962 without being barred by the limitation period applicable to Section 27 of the Customs Act, 1962.

Analysis: The excess payment arose from a wrong entry in the assessment figures, i.e. an arithmetical error. The Tribunal followed its earlier decision holding that Section 154 is an independent provision and is not controlled by Section 27. Since no limitation period is prescribed in Section 154, correction and consequential refund could be granted at any time where the mistake is apparent and the facts bring the claim within that provision.

Conclusion: The refund was rightly allowed under Section 154 and the limitation objection under Section 27 failed.

Final Conclusion: The Revenue's challenge was rejected and the order sanctioning refund was upheld.

Ratio Decidendi: Section 154 of the Customs Act, 1962 operates independently of Section 27 of the Customs Act, 1962, and a correction of an arithmetical mistake with consequential refund is not subject to the limitation period under Section 27.

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