2004 (1) TMI 592 - AT - Customs

Summary

Issues:
1. Refund claim of interest rejected by the Commissioner (Appeals).
2. Interpretation of Customs Refund Application (Form) Regulations, 1995.
3. Verification of the date of filing the refund claim.
4. Consideration of completeness of the application for interest payment under Section 27A of the Customs Act.

Analysis:
The appeal was filed against the rejection of a refund claim of interest by the Commissioner (Appeals). The appellants initially filed a Refund Claim on 13-9-94, which was later admitted and sanctioned by the Revenue on 24-4-2001. The dispute arose when the refund claim of interest due on delayed refund was rejected based on the timing of the complete application submission.

The Commissioner (Appeals) based the rejection on the grounds that the complete application was filed on 12-4-2001, and the Refund Order was passed on 24-4-2001, well within three months as required by Section 27A of the Customs Act. The Customs Refund Application (Form) Regulations, 1995 state that the application shall be deemed received on the date of a complete application acknowledged by the Proper Officer. However, there was ambiguity regarding whether a Chartered Accountant's Certificate was submitted during the original filing in 1994.

The Tribunal remanded the case to the original Refund Sanctioning Authority to verify the actual date of filing the Refund Claim. It was emphasized that if a complete application was indeed filed in 1994, the case should be decided on its merits and in accordance with the law. The decision to remand the case was made to clarify the completeness of the application and ensure proper verification of the filing date for interest payment purposes.

The Tribunal highlighted the importance of scrutinizing the application for completeness as per the Customs Refund Application (Form) Regulations, 1995. It was noted that if the application was found incomplete, it should have been returned to the applicant for rectification. The lack of evidence regarding this scrutiny process led to the decision to remand the matter for further verification by the proper officer to determine the original filing date's relevance for interest payment under Section 27A of the Customs Act.