Customs refund limitation under Section 27 computed from duty payment date; rejection for late filing was unsustainable.

A refund claim under Section 27 of the Customs Act was treated as timely because limitation runs from the date of payment of duty and that date is excluded in computing the six-month period. On that computation, the application filed on 19-7-1996 fell within time, so rejection on the basis that it had to be filed before expiry of six months, and not on the last day, was unsustainable. The matter was remanded to the Assistant Commissioner for fresh decision on merits after granting an opportunity of hearing.

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Issues: Whether the refund application under Section 27 of the Customs Act was filed within the prescribed limitation period and, if so, whether the rejection on the ground of limitation could stand.

Analysis: The limitation under Section 27 runs from the date of payment of duty, and the date of payment is liable to be excluded while computing the six-month period. On that computation, the refund claim filed on 19-7-1996 was within time. The rejection based on the view that the application had to be filed before the expiry of six months, and not on the last day, was unsustainable.

Conclusion: The refund claim was held to be within limitation and the matter was remanded to the Assistant Commissioner for fresh decision on merits after granting an opportunity of hearing.

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