1983 (4) TMI 269 - AT - Customs

Summary

Issues:
1. Refund of customs duty paid on survey shortages.
2. Applicability of Section 13 of the Customs Act, 1962.
3. Binding nature of decisions of Delhi High Court.
4. Interpretation of statutes by High Courts.

Analysis:
The appeal before the Appellate Tribunal CEGAT New Delhi involved a request for a refund of customs duty amounting to &8377; 17,935.36 paid on survey shortages. The Assistant Collector of Customs, Refunds, Madras had initially rejected the claim for refund, citing that the shortage was not reported to Customs before the goods were cleared for home consumption. The Appellate Collector of Customs, Madras, in a subsequent order, upheld the rejection, stating that Section 13 of the Customs Act, 1962 would be applicable in such situations. The appellants argued that losses, including pilferage, should be considered for refund based on a decision of the Delhi High Court in a specific case. However, the Tribunal noted that they had previously differed from the Delhi High Court's views in a separate case involving a different party.

During the hearing, the appellants referenced a case involving the Commissioner of Income-tax to support the argument that the Delhi High Court's decision should be binding on the Tribunal. The Tribunal clarified that they had already addressed this issue in a prior order involving the same appellants. Additionally, a judgment from the Allahabad High Court regarding the interpretation of statutes by High Courts was discussed, which the Tribunal had also covered in their previous order. Another case from the Bombay High Court was cited, where the Court had criticized an Appellate Collector for not considering a relevant High Court decision. However, the Tribunal distinguished this situation from the present case, emphasizing their detailed consideration of the Delhi High Court's decision in a previous matter involving Bharat Electronics Ltd.

Ultimately, the Tribunal found that the shortage had not been reported before the goods were cleared for home consumption, making the orders of the lower authorities justifiable and in accordance with the law. Consequently, the appeal for refund of customs duty was dismissed by the Tribunal.