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Issues involved: Interpretation of Section 27 of the Customs Act, 1962 regarding refund claims and reclassification of goods.
Summary: The appeal was adjourned awaiting a decision from the Larger Bench. The Member finds that the matter can be decided based on Supreme Court decisions without waiting for the Larger Bench's decision. The case involves a refund claim filed within the prescribed time period but rejected by lower authorities due to a classification discrepancy in the Bill of Entry (B/E). The Apex Court's ruling in a similar excise case is considered applicable to customs cases as well. It is emphasized that without an appealable order, seeking reclassification through a refund claim is not permissible. However, in this case, no appealable order was issued after assessment on the B/E. The appellants filed a refund claim within the time limit after paying duty based on the B/E assessment. A Supreme Court ruling allows for reclassification/re-assessment along with a refund claim. The decisions of the Apex Court complement each other, requiring a speaking appealable order to be issued either during initial assessment or consideration of a refund claim/reassessment. Denying an assessee the option to seek reassessment through a refund claim where no appealable order was passed would render Section 27 redundant. While appeals can be filed under Section 128(1) of the Customs Act, it is noted that a modern customs administration should not insist on filing appeals against bland assessment orders. The impugned orders by lower authorities are set aside, and the case is remanded for reconsideration of the refund claim and reassessment under a different classification. The appeal is allowed by way of remand.
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