2026 (8) TMI 342

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....iginal Nos. 758-759/2021/AM(I) dated 18/19.03.2021 were set aside and it has been held that the refund of the revenue deposit in question is not subject to any limitation and hence not barred by limitation. 2. Although both these appeals have been heard on different dates, but since they are arising from the common impugned order they are being disposed of by this order. 3. The short question that arises for consideration is whether Extra Duty Deposit (hereinafter referred to as "EDD") paid in cases of related-party transactions pending final assessment order of imports, partakes the character of a Revenue deposit or of duty? And whether the limitation prescribed under section 27 of the Customs Act, 1962 applies to its refund? 4. T....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....RC) to process the refund applications of the respondent. 7. I have heard learned Authorised Representative appearing for Revenue and learned counsel appearing for the respondent and perused the case records including the written submissions/synopsis placed on record. 8. Learned Authorised Representative for Revenue, reiterating the grounds taken in the Review Order by the Committee of Commissioners, submitted that the EDD is primarily a payment made towards potential duty liability u/s. 18 ibid and once the assessment is finalised, any excess paid becomes a 'refund of duty' governed by the provisions of section 27 ibid. Few authorities have been placed on record by learned Authorised Representative on the general issue of refund, ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... - cases involving Special Valuation Branch (SVB) investigations into related-party imports; and - situations where Customs has doubts about the declared value or other particulars and permits clearance subject to furnishing security. 11. Once the assessment is finalized, EDD is refunded if no additional duty is found payable, and is appropriated towards the demand, if additional duty is found payable. The distinction between customs duty and EDD may be summarised thus:- Customs Duty Extra Duty Deposit (EDD) A statutory levy under the Customs Act and Customs Tariff Act A security deposit, not a statutory levy Payable on assessment Collected as security pending final determination Forms part of government rev....