TaxTMI 
TaxTMI 
2013 (6) TMI 148
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....ance sales tax, value added tax, local tax or any other charges, Section 3(5) of the Customs Tariff Act, 1975 provides for levy of special additional duty in addition to duty leviable under Section 3(1) of the Customs Tariff Act, 1975. It is not in dispute that the goods that are imported by the petitioner attract special additional duty. The Government, however, as a measure to grant certain benefits and on being satisfied that it is necessary in the public interest to do so, issued Notification No.102/2007-Customs, dated 14.9.2007 in exercise of the power under Section 25(1) of the Customs Act, 1962 and granted exemption in respect of special additional duty leviable in terms of Section 3(5) of the Customs Tariff Act, 1975 subject to certain conditions. The said notification reads as follows: "Notification No. 102/2007-Customs New Delhi, the 14th September, 2007 G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the goods falling within the First Schedule to the Customs Tariff Act, 1975 (51 o....
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.... 4.3. The relevant portion of the said circular reads as follows: "4. Time Limit:- 4.1. In the Notification No.102/2007-Customs dated 14.9.2007, no specific time limit has been prescribed for filing a refund application. Under the circumstances, a doubt has been expressed that whether the normal time-limit of six months prescribed in section 27 of the Customs Act, would apply. In the absence of specific provision of section 27 being made applicable in the said notification, the time limit prescribed in this section would not be automatically applicable to refunds under the notification. Further, it was also represented that the goods imported may have to be despatched for sale to different parts of the country and that the importer may find it difficult to dispose of the imported goods and complete the requisite documentation within the normal period of six months. Taking into account various factors, it has been decided to permit importers to file claims under the above exemption upto a period of one year from the date of payment of duty. Necessary change in the notification is being made so as to incorporate a specific provision prescribing maximum time limit of one year fr....
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....te of receipt of application under sub-section (1) of that section, there shall be paid to that applicant interest at such rate, not below five percent and not exceeding thirty percent per annum as is for the time being fixed by the Central Government by Notification in the Official Gazette, on such duty from the date immediately after the expiry of three months from the date of receipt of such application till the date of refund of such duty :- Provided that where any duty, ordered to be refunded under sub-section (2) of section 27 in respect of an application under sub-section (1) of that section made before the date on which the Finance Bill, 1995 receives the assent of the President, is not refunded within three months from such date, there shall be paid to the applicant interest under this section from the date immediately after three months from such date, till the date of refund of such duty. Explanation. Where any order of refund is made by the Commissioner (Appeals), Appellate Tribunal, National Tax Tribunal or any court against an order of the Assistant Commissioner of Customs or Deputy Commissioner of Customs under sub-section (2) of section 27, the order passed by....
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....stoms, dated 28.4.2008, as it is totally inconsistent with the provisions of the Customs Act, 1962 and the Customs Tariff Act, 1975. 9. Section 3(5) of the Customs Tariff Act, 1975 provides for levy of additional duty to counterbalance sales tax, value added tax, local tax or any other charges. In terms of the Notification No.102/2007-Customs, dated 14.9.2007, issued in exercise of the power under Section 25(1) of the Customs Act, 1962, exemption from payment of additional duty was granted on certain terms and conditions. It is not in dispute that the petitioner has satisfied the said conditions and sought for refund of the special additional duty paid on the imported goods. As a consequence, in terms of Section 3(8) of the Customs Tariff Act, 1975, the provisions of the Customs Act, 1962 in relation to refund become applicable to refund of special additional duty also. Sections 3(1), 3(5) and 3(8) of the Customs Tariff Act, 1975 read as under: "Section 3. Levy of additional duty equal to excise duty, sales tax, local taxes and other charges.- (1) Any article which is imported into India shall, in addition, be liable to a duty (hereafter in this section referred to as the ....
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.... added tax, local tax or other charges for the time being in force, which would be leviable on a like article if sold, purchased or transported in India or, if a like article is not so sold, purchased or transported, which would be leviable on the class or description of articles to which the imported article belongs, and where such taxes, or, as the case may be, such charges are leviable at different rates, the highest such tax or, as the case may be, such charge. .... (8) The provisions of the Customs Act, 1962 and the rules and regulations made thereunder, including those relating to drawbacks, refunds and exemption from duties shall, so far as may be, apply to the duty chargeable under this section as they apply in relation to the duties leviable under that Act." (emphasis supplied) 10. The petitioner, therefore, is justified in filing refund application in terms of Section 27 of the Customs Act, 1962 and that is not in dispute. However, no order has been passed so far and the Court has already directed the respondents to process the refund application. In such a situation, the present circular has been challenged. On going through paragraph 4.3 of the circular, it ....