2023 (6) TMI 159 - AT - Customs

Rejection of refund of Anti Dumping Duty - applicability of Exclusion Clause No. (VI) of Notification No. 7/2017-Cus (ADD) dated 17.02.2017 - HELD THAT - The rejection of refund is on the face of it illegal and against the provisions of law particularly, Section 27 (1) (b) of the Act. Section 27 (1) (b) provides for refund to a person, when such person has borne the duty or interest, which was not legally chargeable from him under the scheme of the Act r/w Rules and notification thereunder. Admittedly, in the facts of the present case, appellant being an authorised manufacturer is entitled to exemption from Anti Dumping Duty on the seamless tubes purchased from the importer (Neel Metal Products) which have borne Anti Dumping Duty at the stage of import. Accordingly, the appellant is entitled to refund of the amount of Anti Dumping Duty Of Rs. 40,21,173/- and the impugned order is set aside. The adjudicating authority is directed to disburse the said amount of Anti Dumping Duty within a period of 45 days from the date of receipt of this orders alongwith interest @ 6% p.a. starting from the end of 3 months from the date of application, till the date of disbursement - appeal allowed.

Summary

Issues:
The issue in this appeal is whether the claim of refund of Anti Dumping Duty, filed under Section 27(1) (b) of the Act has been rightly rejected.

Summary:

Issue 1: Refund of Anti Dumping Duty
The Appellant, engaged in manufacturing High Pressure Gas Cylinders, filed a refund claim for Anti Dumping Duty paid by the Importer on Seamless Steel Tubes. The Adjudicating Authority rejected the claim citing the Country of Origin and final assessment of Bills of Entry. The Appellant contended that under Exclusion Clause No. (VI) of Notification No. 7/2017-Cus, goods used for manufacturing gas cylinders are exempt from Anti Dumping Duty.

Issue 2: Rejection of Refund Claim
The Appellant purchased the imported goods from the Importer who had paid the Anti Dumping Duty. The Appellant, a manufacturer of gas cylinders approved by the Chief Controller of Explosives, filed the refund claim within the stipulated time. Despite addressing deficiencies in the claim, the refund was rejected on the grounds of final assessment and lack of appeal.

Judgment:
The Tribunal found the rejection of the refund claim to be illegal and against Section 27 (1) (b) of the Act. As the Appellant was entitled to exemption from Anti Dumping Duty on the purchased goods, the refund of Rs. 40,21,173/- was granted. The adjudicating authority was directed to disburse the amount within 45 days with 6% interest per annum. The appeal was allowed, emphasizing the rightful entitlement to the refund under the law.