2023 (2) TMI 1138 - HC - Customs

Refund of the Special Additional Duties of Customs (SAD) - rejection on the sole ground that the same were barred by the limitation - no SCN issued before rejection of appeals - principles of natural justice (audi alterem partem) - HELD THAT - Concededly no prior notice for rejecting the said appeals on the ground as aforesaid was issued to the appellant. Thus there is merit in the contention that the appellant had no opportunity to address the ground on which the appeals were rejected by the Tribunal. It is not considered apposite to examine this question in the present appeal. It is apparent that the appellant did not have sufficient opportunity to address the objections on which its appeals were rejected - matter remanded to the learned Tribunal to decide afresh after affording the appellant reasonable opportunity to meet the objections regarding any alleged discrepancies in the refund claims.

Summary

Issues:
1. Appeal against order rejecting refund applications on the ground of limitation.
2. Tribunal's rejection of appeals based on discrepancies in refund claims without prior notice to the appellant.

Analysis:
1. The appellant filed appeals against the rejection of refund applications for Special Additional Duties of Customs (SAD) on the basis of limitation. The Adjudicating Authority and Commissioner of Customs (Appeal) had rejected the applications citing the limitation issue. The Tribunal accepted the appellant's argument that the limitation did not apply to SAD based on a previous court decision. However, the Tribunal dismissed the appeals due to discrepancies in the refund amount without notifying the appellant beforehand.

2. The High Court found merit in the appellant's argument that rejecting the appeals based on discrepancies without prior notice deprived the appellant of the opportunity to address the issue. The court noted that the appellant's counsel argued against the discrepancies and claimed the impugned order was erroneous. The court decided to set aside the order related to two appeals and remanded the matter to the Tribunal for reconsideration, emphasizing the need to provide the appellant with a fair opportunity to address any alleged discrepancies in the refund claims.

3. The High Court directed the Tribunal to handle the restored appeals promptly and preferably resolve them within eight weeks from the judgment date. The court's decision focused on ensuring procedural fairness and giving the appellant a chance to address the grounds for rejection, highlighting the importance of due process in such matters.