2010 (9) TMI 513 - AT - Customs

Refund of Redemption fine and higher penalty - The first appellate authority was convinced by the contentions raised by the assesses/appellants and modified the adjudication orders and reduced redemption fine and penalty imposed by the Adjudicating Authority. - Refund to be allowed Refund - non-production of original documents - petitioner had not produced original of the TR 6 Challan and produced only an attested copy - the judgment of the Hon ble High Court of Kerala in the case of Narayan Nambiar Meloths v. CC 2009 -TMI - 76452 - KERALA HIGH COURT - It is his submission that the judgment squarely covers the issue in favour of the assesses. Refund of Deposit - Right of appeal - Held that The amount deposited by the assessee to exercise his right of appeal is as per the statutory requirement, and in this case appellant has paid the amount of redemption fine and penalty as ordered by Adjudicating Authority, under protest . - Refund to be allowed

Summary

Issues:
Refund claims rejection due to non-production of original documents for sanctioning the refund.

Analysis:
The appeals were filed against Orders-in-appeal No. 03/10 and No. 05/10 dated 22-2-2010. The issue involved in both appeals was identical, leading to a common order. The appellants had filed refund claims after the first appellate authority reduced the fine and penalty imposed by the Adjudicating Authority on imported old photocopier machines. The Adjudicating Authority rejected the refund claims as original documents like Bill of Entry and TR6 challans were not produced. The Commissioner (Appeals) upheld this decision, citing Customs Refund Application Regulations. The appellant argued that original documents were not necessary for consequential relief, referring to a judgment from the High Court of Kerala.

The main issue was the refund of excess amounts paid by the appellants due to the reduction in redemption fine and penalty by the first appellate authority. The Adjudicating Authority rejected the refund claims solely based on the non-production of original documents, despite the fact that the redemption fine and penalty had been paid by the appellants for clearance of the consignment. The judgment from the High Court of Kerala in a similar case supported the appellants' position that original documents were not mandatory for processing refund claims in cases of consequential relief. The Circular issued by CBEC also supported this stance, emphasizing that the right to appeal cannot be forfeited based on depositing the ordered amount.

In light of the above analysis and following the precedent set by the High Court judgment, the impugned orders were set aside, and the lower authorities were directed to refund the amounts. The appeals were allowed with consequential relief, emphasizing the statutory right of the appellants to appeal against the Adjudicating Authority's orders.