2008 (1) TMI 681 - AT - Customs

Refund - Time Limitation - Held that - in the case of Tata Iron and Steel Co. Ltd. v. Commissioner of Customs (Port), Kolkata 2006 (7) TMI 363 - CESTAT, KOLKATA has held that the slip/error in as much as exchange value, wrongly computed on account of conversion in wrong currency, can be corrected at any time. The Tribunal also held that the Customs authorities had authority and consequently a duty to correct said clerical error/accidental slip in terms of Section 154 ibid - appeal allowed by way of remand.

Summary

Issues:
1. Refund claims rejected under Section 27 of the Customs Act, 1962.
2. Applicability of Section 27 vs. Section 154 of the Customs Act, 1962.
3. Judicial precedents on correction of clerical errors in refund claims.
4. Decision on remand and setting aside the impugned order.

Analysis:

1. Refund Claims Rejected under Section 27:
The appellants filed two refund claims beyond the six-month period from the date of duty payment, leading to rejection by the Assistant Commissioner under Section 27 of the Customs Act, 1962. The Commissioner (Appeals) upheld these Orders-in-Original, citing the time-barred nature of the claims.

2. Applicability of Section 27 vs. Section 154:
The appellants argued for the allowance of amendment of Bills of Entry under Section 149 of the Customs Act, 1962, due to a mistake by the clearing agent in mentioning the value in US Dollars instead of Netherland Guilders. They contended that the Customs authorities should have granted the refund without invoking Section 27, also referencing Section 154. The Commissioner (Appeals) disagreed, emphasizing the time limitation under Section 27 for refund claims.

3. Judicial Precedents on Clerical Errors:
The Tribunal referred to a previous judgment in MMTC v. Collector of Customs, supporting the rejection of refund claims beyond the prescribed time limit under Section 27. However, a subsequent judgment by the Bombay High Court in Keshari Steels v. Collector of Customs clarified that the limitation under Section 27 does not apply to refunds arising from clerical or arithmetical errors under Section 154. Another case, Tata Iron and Steel Co. Ltd. v. Commissioner of Customs, Kolkata, affirmed the authority of Customs to correct clerical errors in exchange value computations under Section 154.

4. Decision on Remand:
Considering the conflicting judgments, the Tribunal set aside the Commissioner (Appeals)'s order and remanded the cases to the original adjudicating authority for a fresh examination. The Tribunal directed the authority to pass appropriate orders in accordance with law after hearing the appellants, ultimately allowing the appeals by way of remand.

This comprehensive analysis of the judgment highlights the key issues, legal arguments, judicial interpretations, and the final decision, ensuring a detailed understanding of the case.