2017 (3) TMI 1664 - AT - Customs

Refund claim - rejected on the ground that the appellant cannot claim the refund directly without challenging the assessment order (bill of entry) in view of the Apex Court decision in the case of Priya Blue Industries ltd. vs. Commissioner 2004 (9) TMI 105 - SUPREME COURT OF INDIA ? - Held that - there is no infirmity in the impugned order as the appellants are not entitled to claim refund unless they challenge the assessment order which has not been done in the present case - appeal dismissed - decided against appellant.

Summary

Issues:
Refund claim without challenging assessment order

Analysis:
The appeal was against the order rejecting the appellant's refund claim for excess duty paid on imported wax. The appellant imported wax and later realized that the duty payable was 5% as per Notification No. 52/2011-Cus, whereas it was assessed at 10% ad valorem. The Assistant Commissioner of Customs rejected the refund claim, stating the assessment was final under Section 17 of the Customs Act 1962. The Commissioner of Customs (Appeals) also dismissed the appeal, leading to the present appeal.

The appellant argued that the decision in M/s Priya Blue Industries Ltd case was not applicable as the assessment was not in dispute. They relied on the Delhi High Court's decision in Aman Medical Products Ltd case, distinguishing Priya Blue Industries. Additionally, the appellant cited the Tribunal's decision in Bennet Coleman & Co Ltd case. On the other hand, the respondent contended that since the appellant did not challenge the assessment order, they were not entitled to a refund. The respondent relied on the Supreme Court decisions in Priya Blue Industries Ltd case and Collector vs. Flock (India) Pvt. Ltd case. They also mentioned the Tribunal's decision in CEAT Ltd case and the Madras High Court's decision in Commissioner of Customs vs. ACE Designers case to support their argument.

The Tribunal, after considering the arguments and case laws cited by both parties, held that the appellant was not entitled to claim a refund without challenging the assessment order. The Tribunal found no infirmity in the impugned order and dismissed the appeal, upholding the decision that refund cannot be claimed without challenging the assessment order.

In conclusion, the Tribunal upheld the impugned order, emphasizing that the appellants must challenge the assessment order to claim a refund. The decision was based on the principle that refund claims without challenging the assessment order are not permissible, as established by various legal precedents cited during the proceedings.