2001 (7) TMI 140 - HC - Customs

Summary

Issues:
Challenge to refusal of refund of differential duty of landing charges by customs authority.

Analysis:
The petitioner sought a Writ of Certiorarified Mandamus to challenge the refusal of refund of differential duty of landing charges by the customs authority. The customs authority imposed a notional landing charge on the consignments of goods imported by the petitioner, which was contested by the petitioner as the actual landing charges were substantially lesser. The refund applications were rejected by the customs authority and the appellate authority on the grounds that the refund claimed was minimal and would increase their workload. The petitioner contended that since actual landing charges were ascertainable, there was no justification for imposing notional landing charges, and as per the taxing statute, any excess payment entitled the petitioner to a refund.

In a similar case, another judge appreciated the petitioner's plea that actual landing charges were ascertainable and quashed the proceedings of the customs authority, directing a review of the refund claim. The current judge, considering the identical circumstances, agreed with the petitioner's contention that actual landing charges could be determined, thus justifying the refund claim. The judge quashed the proceedings of the customs authority and the appellate authority, remitting the matter back to the customs authority for a fresh review of the refund claim. The customs authority was directed to provide a notice to the petitioner to explain if the liability had been transferred to someone else and then decide on the refund claim within six months.

In conclusion, the judge ruled in favor of the petitioner, quashing the previous proceedings and remitting the matter back to the customs authority for a fresh review of the refund claim. The judge emphasized that when actual landing charges were ascertainable, there was no justification for imposing notional landing charges, and the petitioner was entitled to claim a refund of the differential duty on the landing charges. The customs authority was instructed to decide on the refund claim within six months from the date of the court order.