2011 (6) TMI 44 - AT - Customs

Refund - excess Light Dues paid - Customs officer is the proper officer under the Light House Act, the Commissioner(Appeals) is having jurisdiction and is competent to decide such cases - Held that the proper officer of Customs is empowered to sanction such refund claim on excess Light House Charges provided the claim is eligible otherwise and appeals arising out of such matters can also be decided accordingly - Appeal is allowed

Summary

Issues:
1. Refund of excess Light Dues paid under the Light House Act, 1927.
2. Jurisdiction of the Commissioner(Appeals) under Section 128(1) of Customs Act, 1962.

Analysis:
Issue 1: The case involved a dispute regarding the refund of excess Light Dues paid by M/s Sarvag Shipping Services Pvt. Ltd. under the Light House Act, 1927. The appellants contended that the Light Dues were collected in excess and filed a refund claim for the same. The main question was whether the officer of Customs had the authority to grant a refund of Light Dues paid under the provisions of the Light House Act, 1927. The Tribunal examined the definition of a proper officer under the Act, which includes the officer of Customs assigned by the Central Board of Excise and Customs. It was established that the Customs officer is the proper officer under the Light House Act for processing and granting refunds of excess payments of Light House Dues. The Tribunal also cited past instances where similar appeals were entertained and allowed by the Commissioner of Customs (Appeals), indicating a consistent practice of granting refunds for excess Light House charges by the proper officer.

Issue 2: The Commissioner(Appeals) had dismissed the appeal filed by the appellants on the grounds of lack of jurisdiction under Section 128(1) of the Customs Act, 1962. However, the Tribunal clarified that the Customs officer, being the proper officer under the Light House Act, has the authority to sanction refund claims for excess Light House Charges. The Tribunal referenced a previous case to support the notion that the Customs Collector is the proper officer for refund claims under the Act. Consequently, the Tribunal overturned the decision of the Commissioner(Appeals) and allowed the appeal, emphasizing that the proper officer of Customs is empowered to sanction refund claims for excess Light House Charges, provided the claim meets the eligibility criteria.

In conclusion, the Tribunal ruled in favor of the appellants, setting aside the order of the Commissioner(Appeals) and allowing the appeal with consequential relief, highlighting the authority of the Customs officer as the proper officer for processing refund claims related to excess Light House Charges under the Light House Act, 1927.