2006 (10) TMI 37 - AT - Customs

Refund - Demanded for refund of excess payment of duty due to addititon of freight twice - Assessment order was not challenged - Matter remanded for fresh adjudication

Summary

Issues involved:
Refund of excess duty paid due to clerical error in declaration of value on Bill of Entry.
Interpretation of Section 154 of the Customs Act, 1962 regarding correction of clerical errors in assessment orders.

Analysis:
The judgment by the Appellate Tribunal CESTAT, Mumbai pertains to a case involving a refund claim of Rs. 54,861 paid in excess due to a clerical error in the declaration of value on a Bill of Entry. The appellant had filed the Bill of Entry based on the FOB value instead of the correct C&F value, resulting in the addition of freight twice in the assessable value. The lower authorities rejected the refund claim citing previous court decisions and the need for the appellant to file an application under Section 154 of the Customs Act, 1962, for correction of clerical errors.

The Tribunal noted that the authorities have the power to correct clerical errors or omissions under Section 154 without the appellant having to file a separate application. The Tribunal found that the lower authorities did not consider this provision adequately and decided to remand the matter for fresh adjudication. The Tribunal emphasized the need for a fresh speaking order considering Section 154, especially since the previous court decisions did not address this specific provision of the Customs Act, 1962.

The Tribunal's decision highlights the importance of Section 154 in allowing authorities to correct clerical errors without imposing an obligation on the appellant to file a separate application. By remanding the matter for fresh adjudication, the Tribunal ensures that the provisions of Section 154 are duly considered in determining the appellant's entitlement to the refund of excess duty paid due to the clerical error in the declaration of value on the Bill of Entry.