2005 (5) TMI 531 - AT - Customs

Summary

Issues:
Refund of duty to the appellants.

Analysis:
The appeal pertains to the refund of duty by the appellants, originating from the import of a consignment of cosmetic goods. The appellants filed a Bill of Entry for clearance of the goods, paid the assessed customs duty, and later, the goods were confiscated and reassessed. The Customs duty was set at a specific amount along with a redemption fine. The appellants challenged this order, which was subsequently set aside by the Tribunal. However, the customs duty was reassessed, and the goods were abandoned by the appellants under Section 23(2) of the Customs Act. Subsequently, a refund claim for duty was filed, which was rejected by the authorities.

The main contention raised by the appellants was that they could relinquish the title to the goods under Section 23 of the Act before the order under Section 47 was passed, and thus, their refund claim should not have been rejected. However, the Tribunal held that the order assessing the customs duty and redemption fine constituted the clearance of goods under Section 47 of the Act. As such, the right to relinquish the title under Section 23 could not be exercised after the order regarding duty and redemption fine had been passed. Therefore, the refund claim on this ground was rightly rejected.

Additionally, the Tribunal found that the refund claim was time-barred as it was not filed within the normal limitation period from the date of duty payment. The duty was paid on 15-4-2000, but the refund claim was submitted on 28-5-2003, well beyond the prescribed period. Consequently, the Tribunal upheld the impugned order, dismissing the appeal of the appellants.

In conclusion, the Tribunal ruled in favor of the respondent, upholding the rejection of the refund claim by the authorities. The decision was based on the grounds that the right to relinquish the title under Section 23 could not be exercised after the order regarding duty and redemption fine had been passed, and that the refund claim was time-barred, not filed within the prescribed period from the date of duty payment.