2016 (11) TMI 677

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....s mentioned therein. The time limit prescribed for filing claim is one year from the date of payment of duty. Since, the assessments of bills of entry filed by the appellants were made on provisional basis, the refund claims were not entertained by the Department initially. The appellants filed the claims after finalization of assessments. The claims were rejected as barred by limitation as they were filed after one year of date of payment of duty. In the impugned order, the Commissioner (Appeals) confirmed the rejection of refund on the ground of time bar. Reliance was placed on Board Circular dated 29/07/10 which clarified that the refund claim is eligible if the same is filed within one year from the date of payment of duty at the time o....

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....er Notification 102/07-CUS in cases of provisional assessment of duty was subject matter of decision by Hon'ble Delhi High Court in Pioneer India Electronics (P) Ltd. vs. Union of India reported in 2014 (301) E.L.T. 59 (Del.). The Hon'ble High Court referred to the provisions of above said notification alongwith Section 27 of the Customs Act, 1962 and also Circular No. 23/2010-CUS dated 29/07/2010 and held as below :- "38. In view of the above discussion, we feel that it will be proper to harmoniously construe and interpret notification dated 1st August, 2008 and Section 27 read with Circular dated 29th July, 2010 by holding that an Assessee can make a claim for refund under Notification No. 93 of 2008 dated 1st August, 2008 either....

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....n of the Hon'ble Delhi High Court has been followed in Allen Diesels India Pvt. Ltd. vs. Union of India reported in 2016 (334) E.L.T. 624 (Del.) and M.F. Rings & Bearing Races Limited vs. CC reported in 2016 (337) E.L.T. 17 (Del.). We also note that the Hon'ble Delhi High Court examined similar set of facts in Sony India Pvt. Ltd. vs. CC, New Delhi reported in 2014 (304) E.L.T. 660 (Del.). The Hon'ble High Court held that the right of claim refund only accrues to the importer once sale is complete. To uphold a limitation period starting from the date of payment of duty as prescribed in the amending notification would amount to allowing commencing of limitation period for refund claim before the right of refund even accrued. The Hon'ble High....