2017 (2) TMI 754 - AT - Customs

Refund claim - the machinery imported was covered under EPCG licence and the EPCG licence is now discharged - Held that - Revenue s appeal is devoid of merits as the first appellate authority has merely stated the fact of the case in the impugned order. We find nothing improper in the said recording of the fact. The cross-objection of respondent-assessee is also of devoid of merits, as any refund application of duty paid needs to be processed under the provisions of Section 27 of the Customs Act, 1962. Appeal rejected - decided against appellant.

Issues:
1. Review of impugned order by Committee of Commissioners
2. Refund claim based on EPCG license
3. Grounds of appeal by Revenue
4. Grounds of appeal by Respondent-assessee
5. Merits of Revenue's appeal
6. Merits of Respondent-assessee's cross-objection

Review of impugned order by Committee of Commissioners:
The Tribunal addressed the issue of whether the impugned order had been reviewed by the Committee of Commissioners as required. The respondent's counsel raised a preliminary objection regarding this review. Upon examining the original file, it was confirmed that the review had indeed been conducted by the Committee of Commissioners. Consequently, the appeal was deemed to be in accordance with the provisions, and the miscellaneous application was disposed of.

Refund claim based on EPCG license:
The main issue in question pertained to a refund claim filed by the respondent for around ?1.38 crores, representing 15% of the duty, based on the assertion that the imported machinery was covered by an EPCG license that had been discharged. The adjudicating authority initially rejected the refund claim, but the first appellate authority overturned this decision and remanded the matter back for reconsideration. The Revenue contended that the first appellate authority erred in its findings, questioning the delay in taking action post the expiry of the import period. On the other hand, the Respondent-assessee objected to the remand order, arguing that the issue of unjust enrichment was not initially raised.

Grounds of appeal by Revenue:
The Revenue was dissatisfied with the first appellate authority's decision and raised objections regarding the delay in initiating action after the import period expired. They questioned why the appellant was allowed to file a refund claim instead of the department taking immediate action. However, the Tribunal found no merit in the Revenue's appeal, stating that the first appellate authority had acted in the interest of justice by remanding the matter for fresh consideration by the adjudicating authority.

Grounds of appeal by Respondent-assessee:
The Respondent-assessee contested the remand order issued by the first appellate authority, arguing that the matter was directed to be reconsidered in light of unjust enrichment, which was not initially raised as an issue. However, the Tribunal found that the cross-objection by the Respondent-assessee lacked merit. It clarified that any refund application for duty paid must be processed under the provisions of Section 27 of the Customs Act, 1962, as correctly stated by the first appellate authority in the impugned order.

Merits of Revenue's appeal:
Upon considering the arguments from both sides, the Tribunal concluded that the Revenue's appeal lacked merit. It noted that the first appellate authority had merely stated the facts of the case and acted in the interest of justice by remanding the matter for reconsideration. The Tribunal found no impropriety in the actions of the first appellate authority and upheld the decision to remand the case back to the adjudicating authority.

Merits of Respondent-assessee's cross-objection:
Similarly, the Tribunal determined that the cross-objection raised by the Respondent-assessee was also without merit. It clarified that any refund application for duty paid must adhere to the provisions of the Customs Act, and the first appellate authority's direction for reconsideration was appropriate. Consequently, the Tribunal rejected both the appeals and the cross-objection in view of the foregoing analysis.

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