2023 (8) TMI 1332 - AT - Customs

Scope of SCN - Refund of Customs Duty paid under protest - classification of imported goods - appeal rejected on the ground which was out of the scope of the show cause notice and the Order-in-Original - HELD THAT - As the appellant had failed to bring on record the document of final assessment of such provisionally assist bill of entry. Hence, he has rejected the refund claim. This is not tenable. The show cause notice in the instant case sought to reject the refund claim on the grounds that the documents submitted were not original and were photocopies. The original adjudicating authority has rejected the claim purely on the ground that they had not submitted the proof of payment of duty, and other supporting documents such as the bill of entry in original. Therefore, instead of appreciating or examining the grounds on which the original authority had rejected the refund claim, the appellate authority has introduced a new ground for rejection of the refund claim which was not indicated in the show cause notice. This is not acceptable. Reliance placed in SENOR METALS PVT LIMITED VERSUS COMMISSIONER OF CENTRAL EXCISE ST, RAJKOT 2023 (7) TMI 1115 - CESTAT AHMEDABAD wherein it has been held that no new ground not specified in the show cause notice can be raised by the adjudicating authority. Thus, matter remanded to the original authority to examine the refund claim in the light of the fact that the claim with all the relevant documents in original had been filed with the department on 23.08.2004 by the appellant. Mere observation that the payments cannot be verified, cannot be a ground to deny the claim - appeal disposed off by way of remand.

Summary

Issues Involved:
The appeal challenges the rejection of a refund claim by the Commissioner (Appeals) based on the ground of Bills of Entry being provisionally assessed.

Issue 1: Rejection of Refund Claim
The appellant imported engine components during a specific period and paid differential customs duty under protest due to a classification dispute. A refund claim was filed later, but it was kept in abeyance until a previous claim was resolved. The refund was ultimately rejected on the basis of the Bills of Entry being provisionally assessed. The appellate authority introduced a new ground for rejection not mentioned in the show cause notice, which is against the principles of natural justice. Citing relevant case laws, the Tribunal held that no new ground beyond the show cause notice can be raised. The impugned order was set aside, and the matter was remanded to the original authority for re-examination of the refund claim with all relevant original documents submitted by the appellant.

Separate Judgement by Ms. HEMAMBIKA R. PRIYA, MEMBER (TECHNICAL):
The appeal filed by M/s. Hindustan Motors Ltd challenges the rejection of a refund claim by the Commissioner (Appeals) based on Bills of Entry being provisionally assessed. The appellant submitted all relevant documents along with the refund claim, but the rejection was made on grounds not specified in the show cause notice. The Tribunal emphasized that introducing new grounds for rejection beyond the show cause notice violates the principles of natural justice. Citing precedent cases, the Tribunal set aside the impugned order and remanded the matter for re-examination with all original documents provided by the appellant.