2013 (12) TMI 1501 - AT - Customs

Refund of SAD - N/N. 102/2007-Cus., dated 14-9-2007 - rejection on the ground of time bar - Held that - there is reasonable cause for filing the refund claim on 1-12-2008 and the delay is properly explained, which is only of 3 days beyond control, and the same is hereby condoned. The matter is being remanded to the adjudicating authority to consider the claim of refund on merits - appeal allowed by way of remand.

Summary

Issues: Refund of Special Additional Duty (SAD) claimed beyond the stipulated time limit due to exceptional circumstances.

Analysis:
The case involved an appeal before the Appellate Tribunal CESTAT Mumbai regarding the admissibility of a refund claim for Special Additional Duty (SAD) filed beyond the stipulated time limit. The appellant, M/s. Newstech (India) Pvt. Ltd., imported goods and cleared them after payment of duty, including SAD. The importers sought a refund of SAD as per Notification No. 102/2007-Cus., dated 14-9-2007. However, the refund application was filed after the one-year time limit for making such claims. The adjudicating authority deemed the refund inadmissible due to the delay in filing. The appellant contended before the Commissioner (Appeals) that the delay was caused by reasons beyond their control, specifically citing a terrorist attack in Mumbai on 26-11-2008. Despite this argument, the Commissioner (Appeals) upheld the decision to reject the appeal, stating that no relaxation could be granted for filing the refund claim, even in exceptional circumstances.

In the Tribunal's analysis, it was argued by the appellant that the disruption caused by the terrorist attack in Mumbai justified the delay of a few days in filing the refund claim. The Tribunal considered the circumstances and found that there was a reasonable cause for the delay in filing the claim on 1-12-2008, just three days beyond the stipulated time limit. Consequently, the Tribunal condoned the delay and remanded the matter to the adjudicating authority to consider the refund claim on its merits in accordance with the law. The Tribunal directed that if the refund was found allowable, it should be granted along with interest within four weeks from the date of the order.

In conclusion, the appeal was allowed by way of remand, providing consequential relief to the appellant. The Tribunal's decision highlighted the importance of considering exceptional circumstances, such as the impact of a terrorist attack, in determining the admissibility of refund claims filed beyond the prescribed time limits.