2015 (10) TMI 2550 - AT - Customs

Refund - Period of limitation - delay in filing refund application due to Seizure of goods - Notification No. 102/07-Cus dated 14.09.2007 - Held that - it was beyond the control of the appellant to file the refund claim within one year from the relevant date for the reason that the goods were seized by the Customs Department, which were ultimately released pursuant to the direction of the Hon ble Punjab & Haryana High Court vide order dated 28.08.2012 - the provisions of Section 14 of the Limitation Act, 1963, which provides for exclusion of time for computation of period of limitation, applies - Decided in favor of the assessee.

Summary

Issues:
Refund claim rejection on the ground of limitation.

Analysis:
The appeal challenged the rejection of a refund claim by the Commissioner (Appeals) in an adjudication order. The appellant imported Plastic Granules and plain plastic film, deposited the duty, and had the goods seized by the Customs Department before release for home consumption. After approaching the Hon'ble Punjab & Haryana Court, the goods were released and sold in the domestic market. The refund claim was rejected for not being filed within one year from the date of importation. The Tribunal considered the appellant's inability to file the claim due to the seizure, the subsequent sale within a reasonable time, and compliance with Notification No. 102/07-Cus dated 14.09.2007. The Tribunal relied on Section 14 of the Limitation Act, 1963, which allows for the exclusion of time for computation of the period of limitation based on bonafide litigious activity. The Tribunal interpreted the provision to advance the cause of justice, stating that the refund application was filed within the stipulated time frame of one year post the release and sale of the seized goods. Consequently, the impugned order was set aside, and the appeal was allowed in favor of the appellant with consequential relief.

This judgment primarily dealt with the issue of the rejection of a refund claim on the ground of limitation. The Tribunal considered the circumstances under which the appellant was unable to file the claim within one year from the relevant date due to the seizure of goods by the Customs Department. The Tribunal emphasized the importance of Section 14 of the Limitation Act, 1963, which allows for the exclusion of time for certain activities, including bonafide litigious activities. By interpreting this provision to advance the cause of justice, the Tribunal concluded that the refund application was not barred by limitation as the goods were sold within a reasonable time after release and the application was filed within one year post the sale. Consequently, the impugned order rejecting the refund claim was set aside, and the appeal was allowed in favor of the appellant with consequential relief.