2008 (9) TMI 640 - AT - Customs

Summary

Issues involved:
The issues involved in the judgment are excess duty payment on imported spares, refund claim rejection based on non-challenge of assessment, reliance on Circulars issued by CBEC, and the applicability of instructions in the Customs Law Manual.

Excess Duty Payment and Refund Claim Rejection:
The appellant, M/s. JSW Steel Ltd., imported spares for a mixer under two Bills of Entry. Duty was paid on the entire value of spares covered by the purchase order, leading to excess payment when a second consignment was received. The refund claim was rejected by the original authority and Commissioner (A) due to non-challenge of the assessment of the first Bill of Entry. The Commissioner (A) also cited supplementary instructions in the Customs Law Manual regarding short-shipment and lack of evidence from the importer.

Reliance on Circulars and Applicability of Instructions:
The appellant relied on Circulars issued by CBEC and Chapter 15 of the Customs Law Manual to support their claim for refund of excess duty paid. The appellant argued that as per the instructions, excess duty paid due to shortage/short landing could be claimed without challenging the assessment. The respondent, however, referred to a newer Circular and a decision of a Larger Bench of the Tribunal to counter the appellant's claim.

Judgment and Remand:
After considering the submissions, the Tribunal found that the appellant could claim refund as per the instructions in the Customs Law Manual. The Tribunal held that not challenging the assessment order should not disallow the claim, as per the Apex Court judgment. The appeal was allowed by way of remand to the original authority for further examination of the claim in light of the instructions relied on by the appellant. The appellant was granted the opportunity to provide evidence to substantiate their claim, emphasizing the need to prevent unjust enrichment.