2005 (10) TMI 453 - AT - Central Excise

Summary

Issues:
Departmental appeal against OIA No. 9/04-Cus., time bar for filing refund claim, jurisdiction for filing refund claim, satisfaction of Section 27(1)(ii)(b) requirements.

Analysis:
The departmental appeal was filed against OIA No. 9/04-Cus. passed by the Commissioner of Customs and Central Excise (Appeals) Visakhapatnam. The case involved the payment of customs duty on ship stores upon conversion of a vessel from foreign to coastal run. The respondents filed a refund claim with Chennai Custom House, which was later returned with a direction to file the claim with Custom House Kakinada. The Original Authority issued a show cause notice, deciding against the respondents on grounds of time bar. The Commissioner (Appeals) allowed the appeal after detailed examination, leading to the revenue's grievance over the impugned order.

The revenue raised several grounds of appeal, including the distinction of case laws relied on by the Commissioner (Appeals) and the time limit for filing the refund claim as per Circular 58/97. The revenue argued that the claim was time-barred as it was filed with Kakinada Custom House after the expiration of the prescribed time limit. Additionally, the revenue contended that both the Appellate Tribunal and Customs Authorities are bound by the statutory period of limitation under Section 27(1) of the Customs Act, 1962, citing the case of Miles India Ltd.

During the hearing, the learned Commissioner (Appeals) highlighted the department's inept handling of the issue and emphasized that the refund claim was filed with Chennai Custom House based on a clarification issued by the range officer. The Commissioner (Appeals) found that the requirements of Section 27(1)(ii)(b) were satisfied, and the public notices did not address the key question of jurisdiction for filing the refund claim. The decision in the case of Hyderabad Industries Ltd. v. CCE, New Delhi was deemed inapplicable and distinguishable. Consequently, the Commissioner (Appeals) concluded that the refund claim was not time-barred.

After considering the arguments from both sides, the Appellate Tribunal upheld the Commissioner's order, stating that there was no infirmity in the decision. The appeal of the revenue was deemed devoid of merit, leading to its rejection. The operative portion of the order was pronounced in open court at the conclusion of the hearing.