2007 (11) TMI 216 - AT - Customs

Import of Tetracycline - On realizing that goods were eligible to exemption u/not..6/2002, importers applied for cancellation of out of charge & re-assessment of B/E - goods were under the custody of the dept. until the out of charge was given after re-assessment of the B/E as per C.A. certificate, importer has established that the excess CVD paid has not been availed as credit & invoice value is higher than the sale price of the goods incidence of duty has not been passed so refund allowed

Summary

Issues: Refund of excess duty paid, eligibility for exemption under Notification No.6/2002, passing on the incidence of duty to customers

In this judgment by the Appellate Tribunal CESTAT, Mumbai, the issue at hand was the refund of excess duty paid by the importers. The Commissioner of Customs had set aside the order sanctioning the refund and allowed the appeal of the Revenue. The importers had initially paid duty at a higher rate for the import of Tetracycline, but later realized their eligibility for exemption under Notification No.6/2002, resulting in a lower duty rate. The importers applied for cancellation of out of charge and re-assessment of the Bill of Entry, which was granted. The Chartered Accountant's certificate confirmed that the excess duty paid had not been passed on to customers. The Tribunal held that the importers had successfully rebutted the presumption under Sec. 28 (D) and were therefore eligible for a refund. The impugned order was set aside, and the appeal was allowed, granting the importers the refund they were entitled to.