2010 (10) TMI 479 - AT - Customs

Refund - The goods had been imported by the respondent under DEEC scheme and cleared after debiting the duty amount in the DEEC book - Though, subsequent to the import, SIIB detained the goods for certain reasons, the consignment was released subsequently - However, it so happened that the goods were disposed of by the Port Trust in auction proceedings - Out of the sale proceeds, an amount of Rs. 15,42,520/- was transferred to the Customs department towards duty and a sum of Rs. 18 lakhs was paid to the importer (owner). Held that no offence was involved, nor found, in the import of the goods by the respondent - It was a lawful import under the DEEC scheme and, upon assessment, the duty amount was debited in the DEEC book and clearance allowed - the goods happened to be disposed of by the Port Trust authorities, for which there was no fault on the part of the importer - There was no question of payment of duty of Customs on the goods once again - Therefore, whatever amount was transferred by the Port Trust out of the sale proceeds of the goods to the Customs department on account of duty was liable to be returned to the importer - The learned Commissioner (Appeals) took the right decision in accordance with law and there can be no whisper against it - This appeal of the department is without any merits or bona fides and the same is dismissed.

Issues:
1. Appeal by Revenue against Commissioner (Appeals) decision to return duty amount to importer.
2. Disposal of goods by Port Trust leading to transfer of funds to Customs department.
3. Import under DEEC scheme, subsequent detention by SIIB, and release of goods.

Analysis:

Issue 1: Appeal by Revenue
The appeal was filed by the Revenue against the order of the Commissioner (Appeals) granting the importer's request for the return of Rs. 15,42,520, which had been appropriated towards Customs duty on goods covered by a bill of entry. The Assistant Commissioner had rejected the importer's request to return the amount, advising them to seek recrediting in the DEEC book. The appellate authority set aside the Assistant Commissioner's order and allowed the importer's appeal. The tribunal, after examining the records, found no reason to interfere with the appellate Commissioner's decision. The tribunal concluded that the appeal by the Revenue was without merit or bona fides and dismissed it.

Issue 2: Disposal of Goods by Port Trust
The goods imported under the DEEC scheme were disposed of by the Port Trust in auction proceedings. An amount of Rs. 15,42,520 was transferred to the Customs department towards duty, and Rs. 18 lakhs was paid to the importer. The tribunal noted that there was no fault on the part of the importer in the disposal of the goods by the Port Trust authorities. The tribunal emphasized that there was no question of the importer paying Customs duty on the goods again. Therefore, the amount transferred by the Port Trust to the Customs department was held liable to be returned to the importer. The tribunal affirmed that the Commissioner (Appeals) made the correct decision in accordance with the law.

Issue 3: Import under DEEC Scheme
The goods were lawfully imported under the DEEC scheme, and the duty amount was debited in the DEEC book upon assessment, allowing clearance. Although the goods were detained by SIIB for certain reasons after import, they were subsequently released. The tribunal found no offense or fault in the import of the goods by the importer. The tribunal concluded that the duty amount transferred to the Customs department from the sale proceeds of the goods was required to be returned to the importer, as there was no obligation to pay Customs duty again on the goods.

This detailed analysis highlights the key issues addressed in the judgment, emphasizing the lawful import under the DEEC scheme, the disposal of goods by the Port Trust, and the decision to return the duty amount to the importer as per the Commissioner (Appeals) ruling, which was upheld by the tribunal.

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