2008 (4) TMI 227 - AT - Customs

Duty payable by appellant was adjusted against the voluntary deposit of another party refund arising when appellant absolved from duty liability which was earlier adjusted from deposit of another party in this case said duty will be treated as the payment made by appellant moreover party which had voluntarily deposited the duty has no objection in such refund hence refund is allowed to be made to appellant

Summary

Issues: Refund of customs duty and penalty under Section 27 of the Customs Act, 1962.

Analysis:
1. The main issue in this case revolves around the refund of customs duty and penalty to M/s. Sawant Food Products Ltd. The Assistant Commissioner initially sanctioned the refund, but the Commissioner (Appeals) set aside this decision, citing Section 27 of the Customs Act, 1962, which allows refund claims by those who have paid duty in pursuance of an order.

2. The Tribunal referred to a letter from the Supdt. of Customs certifying that M/s. Sawant Food Products Ltd. had paid duty amounting to Rs. 7,47,192/- under specific orders. The Tribunal noted that the duty amount and penalty were adjusted against a voluntary deposit made by M/s. R.W. Sawant & Co., effectively treating the payment as made by M/s. Sawant Food Products Ltd., justifying the refund.

3. The Tribunal highlighted an affidavit from Shri R.W. Sawant, confirming no objection to the payment of the refund amount along with interest to M/s. Sawant Food Products Ltd. This further supported the Tribunal's decision to uphold the Assistant Commissioner's order and allow the appeal filed by the appellant.

4. Consequently, the Tribunal set aside the Commissioner (Appeals) decision and reinstated the Assistant Commissioner's order, thereby granting the refund of Rs. 8,97,192/- to M/s. Sawant Food Products Ltd. The judgment was delivered after considering all relevant documents and submissions from both parties, ensuring a fair and just resolution to the dispute.