2023 (6) TMI 549 - AT - Customs

Refund claim of 4% Additional Duty of Customs - refund sanctioning authority has not verified compliance to the important conditions for sanctioning the SAD refund - N/N. 102/2007-Cus dated 14.09.2007 as amended by N/N. 93/2008 dated 01.08.2008 read with Board s Circulars No.6/2008-Cus dated 28.04.2008 and 16/2008-Cus dated 13.10.2008 - HELD THAT - The Respondent has died on 22.08.2019 during the pendency of the present appeal. In terms of Rule 22 of Customs, Excise and Service Tax Appellate Tribunal (Procedure) Rules, 1982 on the death of the Respondent, the proceedings will be abated unless an application is made for continuance of such proceedings. In this case no such application is made. As the Death has occurred on 22.08.2019, more than three and half years passed already. In view of the judgement of the Hon ble Supreme Court in the case of SHABINA ABRAHAM AND OTHERS VERSUS COLLECTOR OF CENTRAL EXCISE CUSTOMS 2015 (7) TMI 1036 - SUPREME COURT , wherein it has been held that no proceedings can be initiated or continued against a dead person as it amounts to violation of natural justice in as much as the dead person, who is proceeded against is not alive to defend himself. On the death of the Respondent, the appeal stands abated. The appeal is accordingly disposed of.

Summary

Issues: Appeal against sanction of SAD refund, Compliance with conditions for refund, Abatement of proceedings on death of respondent.

Appeal against sanction of SAD refund: The Commissioner of Customs Seaport, Chennai filed an appeal against the rejection of the departmental appeal regarding the sanction of SAD refund to the Respondent. The Respondent, M/s. K.V. Paints & Chemical Co., filed a refund claim for 4% Additional Duty of Customs in respect of Eighteen Bills of Entry. The original refund sanctioning authority sanctioned the refund amount of Rs.20,82,736/- to the importer without verifying compliance with important conditions for sanctioning the SAD refund, including specific requirements related to sale of goods, payment of appropriate taxes, and submission of relevant documents.

Compliance with conditions for refund: The Respondent, a sole proprietorship concern, faced a challenge due to the death of the sole proprietor, Mr. Kishan Chand Ohri. The learned Advocate highlighted Rule 22 of the Customs, Excise and Service Tax Appellate Tribunal (Procedure) Rules, 1982, which states that proceedings will abate on the death of a party unless an application for continuation is made within sixty days. The death of the Respondent was acknowledged during the proceedings, and it was noted that no application for continuation was submitted. As more than three and a half years had passed since the death, the appeal was deemed abated in accordance with the legal provisions.

Abatement of proceedings on death of respondent: The Tribunal referred to a Supreme Court judgment in the case of Shabina Abraham & Ors. Vs. Collector of Central Excise & Customs, emphasizing that proceedings cannot be initiated or continued against a deceased person as it violates natural justice. Quoting from the case, it was highlighted that tax laws are designed to tax the living, and continuing proceedings against the deceased would be unjust. Therefore, in line with the legal principles established in the mentioned case, the Tribunal held that the appeal stood abated upon the death of the Respondent, and subsequently disposed of the appeal accordingly.