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2016 (12) TMI 14 - AT - CustomsRefund claim - whether the rejection of refund claim on the ground that the appellants cannot claim the refund directly without challenging the assessment order is justified? - reliance placed on the decision of the case of M/s Priya Blue Industries Ltd. Vs. Commissioner of Customs 2004 (9) TMI 105 - SUPREME COURT OF INDIA by learned A.R. where it was held that the refund cannot be claimed directly without challenging the assessment order - the learned counsel placed reliance on the case of Aman Medical Products Ltd. Vs. Commissioner of Customs, Delhi 2009 (9) TMI 41 - DELHI HIGH COURT and laid that the question of reassessment by way of challenging the assessed Bill of Entry would arise only in case where there is a lis or dispute between the assessee/importer and the Department, thus, assessments need not to be challenged. Held that - I am of the considered opinion that the judgment relied upon by the learned counsel is not applicable in the facts and circumstances of the case and 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. Refund rightly rejected - appeal dismissed - decided against appellant.
Issues:
- Whether the appellants are entitled to claim refund without challenging the assessment order? - Interpretation of Section 149 of the Customs Act, 1962 in relation to refund claims. - Applicability of judicial precedents in similar cases. - Consideration of administrative orders as appealable orders under Section 28. Analysis: Issue 1: Entitlement to Claim Refund without Challenging Assessment Order The appellant, engaged in trading consumer products, filed appeals against an Order-in-Appeal rejecting their refund claim due to excess duty payment. The appellant contended that they were eligible for a concessional rate of duty but paid a higher rate due to oversight. Despite making a representation for amendment under Section 149 of the Customs Act, the lower authority rejected the claim, stating that the proper course was to challenge the assessment order. The Commissioner (Appeals) upheld this decision, citing the Priya Blue Industries Ltd. case. The Tribunal concurred, emphasizing that the appellants must challenge the assessment order to claim a refund, as per legal precedents. Issue 2: Interpretation of Section 149 of the Customs Act The appellant argued that the impugned order was unsustainable as administrative orders fall under appealable orders per Section 28. The counsel highlighted that reassessment through challenging the assessed Bill of Entry is necessary only in case of a dispute with the Department. Citing the Aman Medical Products Ltd. case, the appellant contended that assessments need not be challenged in all scenarios. However, the Tribunal, considering both parties' submissions and relevant judgments, held that the appellants were not entitled to a refund without challenging the assessment order, as per the legal provisions. Issue 3: Applicability of Judicial Precedents The Tribunal analyzed various judicial precedents, including the Priya Blue Industries Ltd. case, the Collector Vs. Flock (India) Pvt. Ltd. case, and decisions from the Hon'ble High Courts of Delhi and Madras. The Tribunal distinguished the Aman Medical Products Ltd. case and held that the judgments cited by the appellant were not applicable in the present case. Relying on the decision in the Escorts Ltd. case, the Tribunal upheld the impugned order, dismissing all five appeals. Issue 4: Consideration of Administrative Orders The appellant's argument that the impugned order was not sustainable due to administrative reasons was countered by the respondent, who strongly defended the decision. The Tribunal, after considering the arguments and legal precedents, concluded that the impugned order was valid, as the appellants did not challenge the assessment order, which is a prerequisite for claiming a refund. The Tribunal dismissed all five appeals, upholding the impugned order. In conclusion, the Tribunal upheld the impugned order, emphasizing that the appellants must challenge the assessment order to claim a refund, as per legal provisions and established judicial precedents.
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