2020 (1) TMI 438 - HC - Customs

Refund the amount deposited for the purposes of import - finalization of provisional assessment - time limitation - stand of the Revenue is that there is no time limit for finalisation of the provisional assessments and hence there is no limitation that would apply. HELD THAT - This very issue has been settled by the Board even as early as in 2007, in favour of the assessee. There is thus no justification for the respondents in the present case to have tarried so long and to delay finalisation of assessments as well as consequential refunds to the petitioner. The refund will be paid over to the petitioner within a period of four weeks from date of receipt of copy of this order along with interest in terms of Section 27(a) of the Customs Act, computed from three (3) months from 17.12.2007 being date of receipt of the application in respect of one claim and three (3) months from 10.09.2007 in regard to the other claim - petition allowed.

Summary

Issues:
Mandamus for refund of amount deposited for import through bills of entry, Delay in final assessments and refund, Justification for delay, Time limit for finalization of provisional assessments.

Analysis:
The petitioner sought a mandamus for the refund of the amount deposited for import through several bills of entry dated 15.04.2004, 28.04.2004, and 25.05.2004, along with interest. The petitioner imported coal in 2004 and remitted Additional Duty Deficit (ADD) with an indemnity bond. Despite nearly 15 years passing, final assessments were not completed, and the petitioner regularly requested refunds. The Department issued a notice in 2008 for necessary documents, and the petitioner made submissions supporting their refund claims. The writ petition was filed due to the department's inaction and delay in issuing the refund.

The Department's argument of no time limit for finalization of provisional assessments was challenged citing Circular No.11/2001, which specified a 4-month limit for finalization after provisional assessment. The Board also addressed the pendency of provisional assessments related to the levy of Cess/EDD on imported coal, settling the issue in favor of the importer. The Court found no justification for the Department's delay in finalizing assessments and issuing refunds, especially when the issue had been previously settled.

The Court allowed the writ petition, directing the refund to the petitioner within four weeks with interest, as per Section 27(a) of the Customs Act. The interest was to be computed from specific dates related to the petitioner's claims. No costs were imposed on the petitioner. The judgment highlighted the importance of timely finalization of assessments and refunds, emphasizing adherence to specified time limits and settled legal positions on relevant issues.