2016 (2) TMI 391 - AT - Customs

Refund of SAD - period of limitation - whether the claims were filed beyond the time limit prescribed - Notification No. 102/07-Cus - Held that - where the goods are released on provisional assessment followed by the final assessment, the application seeking refund can be made within the period of one year or six months, as the case may be, of the final assessment as stipulated by Explanation II to Section 27 of the Act or within the enlarged period of one year from the date of provisional release as stipulated by the notification dated 1st August, 2008 read with Circular No. 23/2010-Customs, dated 29th July, 2010. The case is remanded to the adjudicating authority to sanction the refund as per the Hon ble High Court s Order 2013 (9) TMI 705 - DELHI HIGH COURT - Decided in favor of assessee.

Summary

Issues:
Claim of SAD refund beyond time limit under Customs Act, 1962 and related notifications.

Analysis:
The appellant challenged the rejection of their SAD refund claim amounting to Rs. 1,15,09,156 based on the time limit prescribed under Notification No. 102/07-Cus dated 14/09/2007. The Ld. Counsel argued that the appellant complied with all conditions for the refund and emphasized the absence of any limitation period in the said notification. They referred to a High Court decision in a similar case where the order was set aside, and the refund was processed. The Revenue contended that the appellant failed to produce SVB orders supporting their claim and should have filed within the stipulated time without provision for condonation of delay.

The Tribunal noted the case involved related party transactions referred to the Special Valuation Branch for provisional assessment. The High Court's decision highlighted that a claim for refund under Notification No. 93 of 2008 could be made within the limitation period specified under Section 27 of the Customs Act, 1962, or within an extended period of one year from the actual payment date. The Court's ruling emphasized the applicability of the longer of the two periods for filing refund claims. The Tribunal, following the High Court's precedent, remanded the case to the adjudicating authority to process the refund in line with the Court's decision, as the SAD refund had already been sanctioned to the appellant by the Commissioner in Delhi.

Therefore, the appeal was allowed by way of remand, aligning with the High Court's judgment in a similar case. The Tribunal directed the adjudicating authority to sanction the refund as per the High Court's order, which had been accepted by the department, leading to the successful processing of the SAD refund for the appellant.