2014 (7) TMI 918 - AT - Customs

Refund of excess duty - duty paid on original value - later on survey goods were found as damaged and assessed as scrap - period of limitation - appellant filed the refund post survey report - Held that - Appellants should have filed the refund claim before the expiry of six months from the date of payment of duty and interest, if any, paid on such duty . Nothing prevented the Appellants to file the refund claim within the prescribed limit of six months when the fact of the goods being damaged had already come on record vide de-stuffing report date 7.4.2008. There was no need for them to have waited for the survey report before filing the refund claim under Section 27 of the Customs Act, 1962. Therefore, the contention of the Appellant that the limitation should be computed from the date of acceptance of the second joint survey is incorrect. - Decided against the assessee.

Summary

Issues:
1. Refund claim rejected due to delay in filing.
2. Interpretation of Section 27 of the Customs Act, 1962.

Issue 1: Refund claim rejected due to delay in filing.

The case involved the import of a Coordinate Measuring Machine for use in the automobile industry. The goods were found damaged upon unloading, and subsequent surveys revealed irreparable damage, estimating a salvage value. The Deputy Commissioner rejected the refund claim due to being filed beyond the six-month limitation period. The Commissioner (Appeals) upheld the decision, emphasizing that the Appellants were aware of the damage on 7.4.08 but delayed applying for a survey until 20.08.08. The Commissioner cited Section 27 of the Customs Act, 1962, which mandates filing refund claims within six months of payment. The delay in filing the claim was deemed unjustified, as the Appellants were aware of the damage well within the prescribed period. The contention that the limitation should start from the second joint survey was dismissed, leading to the rejection of the appeal.

Issue 2: Interpretation of Section 27 of the Customs Act, 1962.

The Commissioner (Appeals) analyzed Section 27 of the Customs Act, 1962, which outlines the procedure for claiming refunds of duty paid. The section specifies a six-month time limit for filing refund claims from the date of payment of duty. The Commissioner emphasized that the Appellants should have filed the refund claim within the prescribed period, as they were aware of the goods' damage since 7.4.08. The Commissioner clarified that waiting for the survey report before filing the claim was unnecessary, as the damage was already known. The Commissioner's decision was based on a strict interpretation of the statutory provisions, concluding that the Appellants' delay in filing the refund claim was unjustified. Consequently, the appeal was rejected, upholding the decision of the adjudicating authority and the Commissioner (Appeals).

In conclusion, the judgment highlighted the importance of adhering to statutory timelines for filing refund claims and emphasized the need for timely action in such matters. The decision underscored the significance of compliance with procedural requirements under the Customs Act, 1962, to avoid adverse outcomes in refund claims.