2020 (7) TMI 362 - AT - Customs

Rejection of Refund Claim - denial of refund on the ground that the assessment of Bill of Entry has not been challenged by the appellant by filing appeal before appropriate forum - HELD THAT - The appellant has paid duty under protest. Whenever an assessee pays duty under protest, it indicates a challenge by him on the demand of duty made by the department. Therefore it is for the department to pass appropriate assessment order considering the protest made by the assessee. In the present case, the decision of the Hon'ble Supreme Court in the case of ITC LIMITED VERSUS COMMISSIONER OF CENTRAL EXCISE, KOLKATA -IV 2019 (9) TMI 802 - SUPREME COURT would not apply. The impugned order is set aside and the appeal is allowed by way of remand to the adjudicating authority who shall consider the refund claim on merits and pass orders - Appeal allowed by way of remand.

Summary

Issues:
Refund claim rejection due to failure to challenge assessment of Bill of Entry by filing appeal before appropriate forum.

Analysis:
The appellant filed an appeal challenging the rejection of their refund claim, which was based on the authorities' observation that the assessment of the Bill of Entry had not been contested through an appeal. The appellant's representative argued that duty had been paid under protest and duly recorded in the Bill of Entry, eliminating the necessity of filing an appeal to challenge it. The department's representative contended that the matter should be remanded to the adjudicating authority for a review on the merits as the previous orders were based on technical grounds.

Upon hearing both sides and examining the records, the Tribunal noted that the appellant had indeed paid duty under protest, signaling a challenge to the department's duty demand. In such cases, it is the department's responsibility to issue an appropriate assessment order considering the protest. The Tribunal referenced a decision by the Hon'ble Supreme Court to support their ruling. They set aside the impugned order, allowing the appeal by remanding it to the adjudicating authority for a thorough consideration of the refund claim on its merits and subsequent issuance of orders.

This judgment emphasizes the significance of paying duty under protest as a means of challenging the department's duty demand, shifting the responsibility to the department to address the challenge appropriately. The Tribunal's decision to remand the matter for a review on the merits underscores the importance of ensuring that refund claims are considered thoroughly and fairly by the adjudicating authority.