2007 (1) TMI 42 - AT - Customs

Refund(Customs) Appellant claim for refund of duty paid on the short receipt of good rejected by the lower authority Commissioner(Appeals) after go through the details allow the refund to appellant

Summary

Issues:
1. Refund claim for short-supplied goods clearance.
2. Entitlement for refund claim based on documentary evidence.
3. Applicability of previous judgments on refund claims.

Analysis:
1. The case involved a refund claim for short-supplied goods clearance. The appellant filed a Bill of Entry for the clearance of 169 un-ground rods, but upon inspection, it was found that there was a short supply of 100 un-ground rods. The appellant paid duty for the entire quantity invoiced and later filed a refund claim for the duty paid on the short-supplied goods. The lower authority rejected the refund claim, leading to an appeal to the Commissioner (Appeals).

2. The issue of entitlement for the refund claim was a crucial point of contention. The Revenue argued that the short shipment was not noticed before the clearance from customs, citing previous case laws to support their stance. However, the appellants had taken appropriate steps upon discovering the shortage, including reversing the Cenvat credit and providing documentary evidence of the short-supplied goods. The Commissioner (Appeals) considered the circumstances of the case and granted the refund, emphasizing the importance of documentary evidence in such matters.

3. The applicability of previous judgments on refund claims was also debated. The Revenue relied on decisions where it was held that once goods are cleared out of customs charge, no refund is available. However, the Tribunal highlighted that each case must be evaluated based on its specific facts and circumstances. The Tribunal emphasized that the green channel clearance facility granted to importers signifies a level of trust from the government, and in this case, the documentary evidence provided by the appellants supported their claim for a refund. The Tribunal rejected the Revenue's appeal, affirming the legality and correctness of the Commissioner (Appeals) decision based on the presented evidence.