2011 (2) TMI 886 - AT - Customs

Refund claim - Exemption Under Notification No. 102/2007-Cus dated 14.09.2007 - Refund claim was filed after expiry of one year from the date of payment of import duty violating condition 2(c) of Notification No. 102/2007-Cus dated 14.09.2007 - no specific time limit has been prescribed for filing a refund application under Notification No. 102/2007-Cus - whether the normal time-limit of six months prescribed in Section 27 of the Customs Act, would apply - The Board specifically states that time limit under Section 27 would not be automatically applicable - Since the provisions of Section 27 is not applicable, the decision seems to have been taken to incorporate the condition of one year in the notification itself - Obvious conclusion that can be arrived at is that if the period prior to this date the time limit would not be applied - Appeal is allowed with consequential relief to the appellants.

Summary

Issues involved:
1. Refund claims for Special Additional Duty (SAD) under Customs Tariff Act, 1975.
2. Time limit for filing refund claims under Notification No. 102/2007-Cus dated 14.09.2007.

Analysis:

Issue 1: Refund claims for Special Additional Duty (SAD) under Customs Tariff Act, 1975:
The appellant had filed three refund claims for SAD paid during the importation of goods against specific bill of entry numbers. The claims were made under Notification No. 102/2007-Cus dated 14.09.2007, which allowed refunds subject to certain conditions. Two claims were found in order and refunds were sanctioned. However, the third claim was rejected as it was filed after one year from the date of import duty payment, violating the conditions of the notification.

Issue 2: Time limit for filing refund claims under Notification No. 102/2007-Cus dated 14.09.2007:
The Chartered Accountant representing the appellants argued that the time limit for filing refund claims was introduced later through notification No. 93/2008-Cus dated 01.08.2008. Therefore, the condition of one year for filing claims should not apply to duties paid before that date. The Chartered Accountant relied on Circular No. 6/2008 dated 28.4.2008, which supported the view that no specific time limit was initially prescribed for filing refund applications under the said notification. The Circular clarified that importers could file claims within one year from the date of duty payment. The Tribunal agreed with this interpretation, stating that since Section 27 time limit was not automatically applicable, the one-year condition should not be applied retrospectively. The appeal was allowed in favor of the appellants, providing consequential relief.

In conclusion, the Tribunal's judgment clarified the application of time limits for filing refund claims under specific notifications and upheld the appellants' right to claim refunds within one year from the date of duty payment, in line with the relevant circular and notification provisions.