1987 (8) TMI 92 - HC - Customs

Summary

Issues:
1. Refund of additional duty paid on imported goods under Customs Tariff Act, 1975.
2. Rejection of refund application based on time limit stipulated under Section 27 of the Customs Act, 1962.
3. Entitlement to refund for items not covered in the original refund application.
4. Court's authority to order refund for items not specifically mentioned in the refund application.

Analysis:
The petitioners, manufacturers of refrigerating and air-conditioning machinery, imported goods between May 1979 and November 1980, which were not covered by the relevant notification under the Customs Tariff Act, 1975. They paid additional duty under a mistaken belief and later applied for a refund on July 1, 1980. The Assistant Collector of Customs rejected the refund application citing a six-month time limit under Section 27 of the Customs Act, 1962. The petitioners filed appeals against these rejections, which were upheld by the Appellate Collector of Customs. The petitioners then filed a writ petition challenging these orders, claiming entitlement to refund for other consignments as well.

The court noted that duty had been collected without legal authority and by mistake, obligating the respondents to refund the amounts claimed by the petitioners. While the respondents argued that no relief could be granted for items not included in the original refund application, the court observed that the respondents would likely have rejected those applications as well. The court held that since the duty collection was unauthorized, it could order a refund for those additional items as well, despite not being specifically mentioned in the initial application.

The court ruled in favor of the petitioners, making the rule absolute for prayers (a) and (b). Regarding the items not included in the original refund application, the court directed the petitioners to provide all necessary particulars and supporting documents within four weeks. The respondents were instructed to verify the correctness of the items and the refund amounts within eight weeks of receiving the required information. Subsequently, the respondents were ordered to refund the amounts due for those items and the other three refund applications within eight weeks of completing the verification. No costs were awarded in the case.