2014 (10) TMI 370 - AT - Customs

Denial of refund claim - Bar of limitation - Unjust enrichment - Held that - Refund claim can be filed in consequence of any judgment decree, or direction of the appellate authority within six months. In this case, it is on record that the order of Commissioner (Appeals) dated 28-5-2008 was challenged by the Revenue before this Tribunal. Therefore, the assessment of bills of entry were still in dispute before this Tribunal at the time of filing the refund claim. This Tribunal has set aside the original assessment of bills of entry vide order dated 28-2-2011 and said order has been accepted by the department. Therefore, as per the provisions of Section 27 of the Customs Act, 1962, the limitation for filing the refund claim shall start from 28-2-2011 and within six months from 28-2-2011, the appellant can file the refund claim. In these circumstances, I hold that the refund claim filed by the appellant is within time - Decided in favour of assessee.

Summary

Issues:
1. Refund claim denied on the grounds of limitation.

Analysis:
The appellant imported chemicals, cleared the goods on payment of excess duty, and challenged the assessment before the Commissioner (Appeals). The Commissioner (Appeals) set aside the assessment with a direction for reassessment. The reassessment was challenged by the Revenue before the Tribunal. During this period, the appellant filed a refund claim for the excess duty paid. The refund claim was rejected as time-barred by both lower authorities, stating it was filed beyond the six-month period from the date of assessment being set aside.

The appellant argued that the limitation for filing the refund claim should start from the date of reassessment, which was done on 16-2-2010. The Revenue contended that the refund claim should have been filed within six months of the original assessment being set aside on 28-5-2008. The core issue was determining the correct starting point for the limitation period for filing the refund claim.

The Customs Act, 1962, Section 27 provides for the claim of refund of duty. The provision states that the limitation for filing a refund claim in consequence of any judgment, decree, or direction of the appellate authority is within six months. The Tribunal noted that the order of Commissioner (Appeals) dated 28-5-2008 was challenged before them, and the assessment was still in dispute. The Tribunal set aside the original assessment on 28-2-2011, which was accepted by the department. Therefore, the limitation for filing the refund claim should start from 28-2-2011, as per the provisions of the Customs Act, 1962.

Consequently, the Tribunal held that the refund claim filed by the appellant was within the permissible time frame. The impugned order denying the refund claim on the grounds of limitation was set aside, and the appeal was allowed with consequential relief. The adjudicating authority was directed to consider the bar of unjust enrichment and pass the order within 30 days from the communication of the Tribunal's order.