2000 (8) TMI 201 - AT - Central Excise

Summary

Issues Involved:
1. Assessment of Customs duty on imported parts and components of two-wheeled motor vehicles.
2. Rejection of refund claim on grounds of time bar and unjust enrichment.

Issue 1 - Assessment of Customs Duty:
The appellants, manufacturers of two-wheeled motor vehicles, imported parts during 1986-87 to 1988-89 and claimed assessment of Customs duty based on foreign collaborator invoices. Additional 5% revenue deposit was paid each time goods were cleared. The value of goods was determined by the Assistant Collector, leading to a refund claim by the appellants. The Assistant Commissioner rejected the claim as time-barred and for unjust enrichment. The Commissioner (Appeals) upheld the rejection, citing time limitations.

Issue 2 - Rejection of Refund Claim:
A show cause notice proposed rejection of the refund claim due to filing beyond the six-month period as per Section 27 of the Customs Act and lack of evidence on duty burden. The Assistant Commissioner's order rejected the claim on these grounds. The appellants appealed, arguing that their remedy was a refund claim, not an appeal against the final assessment. The Tribunal overruled objections, citing the provisional nature of assessment and the Supreme Court's ruling in Mafatlal Industries case, stating that refund claims after finalization are not governed by specific sections. The Tribunal held in favor of the appellants, allowing the refund claim and setting aside the rejection order.