2022 (8) TMI 936 - HC - Customs

Refund of Special Additional Duty of customs - time limitation - section 3 (5) of the Customs Tariff Act, 1975 - HELD THAT - In the Premier Timber 2022 (7) TMI 885 - DELHI HIGH COURT , we had examined the judgements rendered by coordinate benches of this Court in Sony India Pvt. Ltd. v. Commissioner of Customs, New Delhi, 2014 (4) TMI 870 - DELHI HIGH COURT , where it was held that The imposition of a period of limitation for the first time, without statutory amendment, through a notification, therefore could not prevail. Thus, in line with the judgment rendered in Premier Timber, the appeal preferred by the revenue is dismissed.

Summary

Issues:
Application of limitation on refund sought under section 3(5) of the Customs Tariff Act, 1975.

Analysis:
The High Court considered an appeal against the order passed by the Customs, Excise & Service Tax Appellate Tribunal concerning the application of limitation on a refund sought under the Customs Tariff Act. The issue was similar to a previous case, Premier Timber, where the Court had examined judgments in Sony India Pvt. Ltd. v. Commissioner of Customs and Commissioner of Customs (Import) v. Wilhem Textiles India Pvt. Ltd. The Court agreed with the reasoning in Sony India Pvt. Ltd. case, which was also supported by a judgment in S.R. Traders. The Court found the reasoning of the lower authorities flawed as limitation cannot be prescribed by a notification, as clarified in the Sony India Pvt. Ltd. case.

The Court highlighted that the Customs Act prescribes a time limit for refund claims, and the imposition of a period of limitation through a notification could not prevail over the statutory provisions. Therefore, the Court agreed with the view taken in Sony India Pvt. Ltd. and allowed the appeal, setting aside the orders of the Tribunal and lower authorities. The respondent was directed to process the refund application in accordance with the decision of the Court.

The Court emphasized that if the revenue preferred an appeal and it was tagged with the Wilhem Textiles case, the final decision by the Supreme Court in that appeal would bind the parties. Ultimately, the appeal by the revenue was dismissed, the Tribunal's order was sustained, and the revenue was instructed to process the refund application as per the Court's decision in the Premier Timber case. The judgment provided a comprehensive analysis of the legal principles involved in applying limitations on refund claims under the Customs Tariff Act, ensuring a fair and just outcome based on established legal precedents.