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2019 (1) TMI 837 - HC - CustomsRefund of excess duty paid - N/N. 172/89-Cus., dated 29-5-1989 - Classification of imported goods - Epoxy stator coil for their power plant - classified under CTH 8503 or under CTH 8544.11? - Held that - Though originally at the first round, the petitioner failed to succeed, the fact remains that after remand by the Apex Court, the CESTAT by order in M/S. KARNATAKA POWER CORPORATION LTD. VERSUS CC, CHENNAI 2016 (3) TMI 296 - CESTAT CHENNAI , found the classification issue in favour of the petitioner by specifically holding that the goods imported under the Bills of entry are epoxy stator coils classifiable under 8503 and not under 8544. Therefore, the Tribunal allowed the appeal with consequential relief. There is no dispute that the above said order of the Tribunal has become final, as no further appeal is filed by the Revenue against the said order. When such being the position, more particularly, when the classification issue has reached its finality in favour of the petitioner, there is no justification on the part of the respondents in keeping the refund claim of the petitioner pending all these years. The writ petition is disposed of with a direction to the respondents to pass orders on the refund claim filed by the petitioner, based on the order already passed by the CESTAT as well as the notification issued by the Revenue in Notification No. 172/89-Cus., dated 29-5-1989.
Issues:
1. Classification of imported goods under Customs Tariff Act, 1975. 2. Refund claim based on correct classification. 3. Delay in considering refund claim by Customs authorities. Analysis: 1. Classification of Imported Goods: The petitioner, a Government undertaking, imported epoxy stator coils for a power plant. Initially classified under Tariff 8544.11 by Customs, the petitioner later sought reassessment under Tariff Item 8503 for a refund of excess duty paid. After multiple rounds of appeals, the CESTAT, in its final order dated 2-3-2016, ruled in favor of the petitioner. The Tribunal held that the epoxy stator coils are classifiable under 8503, not 8544. This decision was based on the specific use of the coils for power generators in a Hydro Power Project. The Tribunal directed the authorities to settle the legitimate refund claim upon receipt of the order. 2. Refund Claim and Notification No. 172/89-Cus.: Following the CESTAT's order, the petitioner expected a refund of the excess duty paid. The petitioner's claim was supported by Notification No. 172/89-Cus., dated 29-5-1989, which exempted the relevant tariff item. Despite clear findings by the CESTAT and the petitioner's compliance with notices issued by the authorities, the refund claim remained unresolved. The petitioner's counsel argued that the authorities had no justification for the delay in refunding the excess duty, especially after the CESTAT's classification decision in favor of the petitioner. 3. Delay in Considering Refund Claim: The Court noted the prolonged litigation process spanning 15 years, involving various appellate levels and a previous appeal to the Supreme Court. Given the finality of the CESTAT's decision in favor of the petitioner and the absence of further appeals by the Revenue, the Court found no justification for the continued delay in processing the refund claim. The Court directed the respondents to settle the petitioner's legitimate refund claim promptly, within four weeks, based on the CESTAT's order and the relevant notification exempting the tariff item. In conclusion, the Court emphasized the need for timely resolution of refund claims based on correct classification of imported goods, as determined by competent authorities. The judgment highlights the importance of adherence to legal procedures and notifications in customs matters to ensure fair treatment for importers seeking refunds of excess duties paid.
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