2016 (9) TMI 773 - AT - Customs

Rejection of refund claim - SAD - ground of limitation - notification number 102/2007-CUS date 14.09.2007. The notification provides a period of one year for claiming the refund by treating the relevant date as date of payment of duty - provisional assessment - refund claim filed rejected on the ground that they should be filed after finalization of assessment - Held that - Revenue cannot first refuse to accept the refund claim on the ground of provisional assessment and then to reject the same, when filed after finalization on the ground of limitation. In respect of earlier bill of entries refund claim filed by appellant was rejected by the Revenue on the ground that it is to be filed after finalization of assessment. It is not clear as to whether any refund claim in respect of the present disputed bill of entries were also filed by the assessee during the provisional assessment or not - matter remanded to original authority for factual verification - appeal disposed off.

Summary

Issues:
1. Refund claim rejection on the ground of limitation.
2. Dispute regarding the time limit for filing refund claims.
3. Provisional assessment impact on refund claims.

Analysis:
The judgment by the Appellate Tribunal CESTAT NEW DELHI involved a case where the appellants imported goods and paid special additional duty of customs. The assessments were held to be provisional due to disputes regarding valuation. Subsequently, the importer filed a refund claim under a notification allowing refunds subject to specific conditions. The Assistant Commissioner rejected the refund claim citing limitation issues, as the notification provided a one-year period for claiming refunds from the date of duty payment.

On appeal, the appellant argued that they filed refund claims within the prescribed time limit but were advised by the Assistant Commissioner to wait until finalization of provisional assessments. The Commissioner (A) accepted the appellant's submissions and set aside the rejection order. However, the appellant failed to file refund claims for subsequent Bill of Entries due to the provisional assessment issue, leading to rejection by the Adjudicating Authority and upheld by Commissioner (A).

The appellants contended that the one-year period for filing refund claims should start from the date of finalization of assessments, not from the date of duty payment. The Tribunal observed that the Revenue cannot reject refund claims based on provisional assessments and then reject them for being time-barred after finalization. The Tribunal set aside the impugned order and remanded the matter for factual verification and a decision on the legal issue by the original Adjudicating Authority.

In conclusion, the appeal was disposed of by remanding the matter for further examination and decision by the lower authorities, emphasizing the need for a detailed review of the refund claims in light of the provisional assessment issue and the correct interpretation of the time limit for filing such claims.