1996 (9) TMI 154 - HC - Customs

Summary

Issues:
The judgment involves the refund application filed by the Petitioners for excess recovery of Customs Duty, the rejection of the application based on time limit under Section 27 of the Customs Act, 1962, and the subsequent appeals dismissed on the same ground.

Refund Application and Rejection:
The Petitioners imported Copper Moulds Tubes for steel casting machines and paid Customs Duty. They later received a letter from the Assistant Collector of Customs regarding excess recovery. The Petitioners filed a refund application within 17 days of receiving the letter, seeking correction of an arithmetical error. The application was rejected citing non-compliance with the time limit under Section 27 of the Act.

Legal Argument and Decision:
The Counsel for the Petitioners argued that the refund application was not based on wrongful payment but on an error in calculation, falling under Section 154 of the Act for correction of arithmetical mistakes. The Court agreed that Section 27 was not applicable in this case as the error was acknowledged by the Assistant Collector. Therefore, the Petitioners were entitled to the refund. The impugned orders were quashed, and the Respondents were directed to refund the amount to the Petitioners.

Conclusion:
The High Court allowed the Petition, setting aside the orders rejecting the refund application and directing the refund of the excess amount paid by the Petitioners.