2011 (4) TMI 1289 - HC - Customs

Summary

Issues involved: Appeal challenging refund claim rejection by lower authorities, entitlement to challenge assessment order, time limitation for refund claim, setting aside orders by Tribunal, remanding matter back to Original Authority.

In the present case, the revenue appealed against the Tribunal's decision to set aside the order rejecting the refund claim made by the assessee, a renowned institute, and remanding the matter back to the Original Authority. The assessee, Indian Institute of Science, filed a refund claim for duty paid on defective imported goods under Customs Notification No. 51/96, which provides for exemption from duty on defective goods. The claim was initially rejected on the grounds that the assessee was not entitled to challenge the assessment order and that the claim was time-barred, relying on the judgment in Priya Blue Industries Ltd. v. Commissioner. The Appellate Authority also upheld the rejection. Subsequently, the Tribunal set aside these decisions and ordered a de novo enquiry by the Original Authority. The revenue appealed against this decision.

Upon review of the facts and evidence, the High Court found that the Tribunal did not err in setting aside the lower authorities' orders and remanding the matter for a fresh investigation by the Original Authority. The Court concluded that there was no merit in the revenue's appeal and accordingly rejected it.