2019 (10) TMI 597 - AT - Customs

Refund of customs duty - rejection of refund on the ground that appellant have not produced the challans - HELD THAT - As per admitted fact, the payment was taken by the DRI through bankers cheques and the same was deposited in the bank and realized the amount. No challan was taken by the appellant therefore, there is no question of producing any challan by the appellant. So far as the payment by the appellant is concerned, there is no dispute and the payment has been made correctly. The appellant are entitled for the refund and the same may be processed in accordance with the law - appeal allowed - decided in favor of appellant.

Summary

Issues:
Refund rejection based on lack of produced challans.

Analysis:
The appeal was filed against an order-in-appeal upholding the rejection of a refund of ?52 lakh by the Assistant Commissioner of Customs, Ahmedabad, solely due to the absence of produced challans. The appellant argued that the department admitted the payment through banker's cheques to the Directorate of Revenue Intelligence (DRI) during investigation, and hence, the lack of challans should not invalidate the refund claim. The Revenue, represented by the Assistant Commissioner, reiterated the findings of the impugned order.

Upon examination, it was found that the department acknowledged the payment of ?52 lakhs in the order-in-original. The payment was made through banker's cheques to the DRI, and the Revenue accepted and realized the amount. Various documents and references confirmed the payment made by the appellant. The rejection of the refund claim was based solely on the appellant's failure to produce duty paid documents like challans. However, since the payment was made through banker's cheques without the issuance of challans, the appellant was not required to produce any challans. The Tribunal concluded that the appellant was entitled to the refund as the payment had been correctly made, and instructed that the refund be processed in accordance with the law. Consequently, the appeal was allowed.

This detailed analysis highlights the crucial legal points addressed in the judgment, emphasizing the significance of the payment method and the lack of challans in determining the eligibility for a refund.