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Issues:
Refund claim rejection based on non-challenge of assessment order and reliance on a Supreme Court judgment. Appellant's argument against interest calculation as part of assessment and timely duty payment. Analysis: The appeal was filed against the rejection of a refund claim of Rs. 97,969/- for interest on duty paid. The refund was denied as the assessment order was not challenged, following the Supreme Court judgment in Priya Blue Industries case. The appellant argued that interest calculation was not part of the assessment, and since duty was paid promptly after receiving the bill of entry, interest should not apply. The appellant contended that the Priya Blue Industries judgment was not relevant as it dealt with customs duty refund, whereas this case concerned interest refund. They claimed that the bill of entry was assessed later than the date mentioned in the assessment memorandum, and duty was paid promptly after assessment. The appellant emphasized that interest should not be charged in such circumstances. The Tribunal noted that assessment of the bill of entry was conducted under Section 17, which does not mention interest calculation or liability. The liability for interest arises under Section 47 if duty is not paid within 5 days of bill return. Therefore, interest is not considered part of the assessment process but a subsequent obligation based on timely duty payment. It was clarified that interest liability is triggered only if duty is not paid within 5 days of bill return after assessment completion. The Tribunal highlighted that interest calculation is separate from the assessment process and is contingent on duty payment timelines. The case was remanded for further review on the assessment memorandum discrepancy and eligibility for refund, instructing lower authorities to consider unjust enrichment and issue a comprehensive order after allowing the appellant to present their case.
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