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Issues involved:
The issue involved in this case is whether an importer can correct errors in the Bill of Entry and claim refund of excess duty paid erroneously during provisional assessment u/s Section 154 of the Customs Act. Summary: Issue 1: Claim for refund of excess duty paid erroneously during provisional assessment The case involved M/s. Volvo India Pvt. Ltd. importing automobile components through Chennai Port. The importer pointed out an error in the freight amount declared in the Bill of Entry, which was assessed and duty paid accordingly. The supplier acknowledged the error and issued a credit note for the excess amount charged. The importer sought permission to correct the error in the Bill of Entry and claim a refund of Rs. 3,79,637/-, which was denied by the lower authorities. The Commissioner (A) held that the claim for refund was premature as the assessment was provisional. The Tribunal, considering previous judgments, held that the importer has the right to seek amendments in the Bill of Entry under Section 154 of the Act and claim refund of excess duty paid erroneously during provisional assessment. Issue 2: Correcting errors under Section 154 of the Act The Tribunal referred to a previous decision where it was held that errors in decisions due to importer's mistakes can be corrected u/s Section 154 of the Act. It was noted that the Section allows for correction of errors 'at any time' and there is no prohibition on rectifying errors in provisional assessment. The assessing authority was directed to allow the importer to correct the error in the Bill of Entry under Section 154 and grant consequential refund, subject to the provisions of Section 27(2) regarding unjust enrichment. In conclusion, the appeal by Volvo was allowed, and the Tribunal ruled in favor of the importer's right to correct errors in the Bill of Entry and claim refund of excess duty paid erroneously during provisional assessment u/s Section 154 of the Customs Act.
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