2007 (5) TMI 526 - AT - Customs

Summary

Issues involved: Appeal against the order of the Commissioner (Appeals) regarding the admissibility of a refund claim u/s Customs Act.

Summary:
The appellant imported goods and filed into bond bill of entry, which were subsequently warehoused and cleared after filing ex-bond bill of entry. A reduction in duty rate from 75% to 65% was notified, and the appellant claimed a refund of Rs. 7,08,421/-, which was initially sanctioned but later disallowed by the Commissioner (Appeals) based on non-challenge of assessment order. The appellant argued that no separate assessment order existed when goods were removed from the warehouse, hence challenging the assessment was not applicable.

Regarding the assessment of warehoused goods, Section 15 of the Customs Act mandates reassessment at the time of clearance from the warehouse to determine the duty rate. Reassessment is crucial to give effect to the provisions of the Act, as defined in Section 2(2) which includes reassessment as part of assessment. Since the importer did not challenge the assessment, the claim for refund was deemed inadmissible based on legal precedents cited by the Commissioner (Appeals) and the Hon'ble Supreme Court.

The Tribunal upheld the Commissioner (Appeals)'s decision, stating that reassessment is necessary for warehoused goods cleared from the warehouse, and the appellant's failure to challenge the assessment rendered the refund claim inadmissible. Therefore, the appeal was dismissed.