2008 (9) TMI 787 - AT - Customs

Summary

Issues:
1. Incorrect declaration of value in Bill of Entry.
2. Rejection of refund claim by Adjudicating Authority.
3. Decision of Commissioner (Appeals) allowing the refund claim.
4. Application of limitation period under Section 27 of Customs Act, 1962.

Analysis:
1. The case involved the appellants filing a Bill of Entry for Modules parts for Sim cards, incorrectly declaring the value in GBP instead of USD as stated in the commercial invoice. The Adjudicating Authority rejected the refund claim due to the failure of challenging the Bill of Entry. However, the Commissioner (Appeals) allowed the refund claim, subject to unjust enrichment verification.

2. The Tribunal found that the mistake in declaring the value in GBP in the Bill of Entry instead of USD was due to an oversight. The Commissioner (Appeals) justified the refund claim based on a previous decision in the case of Aditya Birla Nuvo Limited. Additionally, referencing the case of CC (Import), Mumbai v. Nicolas Piramal India Ltd., the Tribunal clarified that the limitation period under Section 27 of the Customs Act, 1962 does not apply to refunds resulting from clerical or arithmetical errors. As the error in this case was clerical in nature, the Tribunal deemed the correction of USD instead of GBP in the Bill of Entry as admissible without the need to file an appeal against the original entry.

3. The Tribunal concluded that since the mistake was a clerical error that could be rectified, the refund claim arising from the correction of the currency declaration in the Bill of Entry was valid. Therefore, the Tribunal upheld the decision of the Commissioner (Appeals) and rejected the appeal filed by the Revenue.

4. The judgment highlights the importance of distinguishing between clerical errors and other types of mistakes in customs declarations, emphasizing that clerical errors can be rectified without being subject to the usual limitation periods. This case serves as a precedent for similar situations where errors in customs declarations are rectified without the need for formal appeals against the original entries.