1987 (1) TMI 218 - AT - Customs

Summary

Issues Involved:
1. Whether the refund application was received by the Assistant Collector within the prescribed time limit.
2. Whether the principles of natural justice were violated due to the absence of a show-cause notice and personal hearing.
3. Whether the presumption under Section 114 of the Evidence Act applies to the receipt of the refund application.
4. Applicability of the law of limitation to the Customs Act.

Detailed Analysis:

Issue 1: Receipt of Refund Application within Prescribed Time Limit
- The appellants claimed that they sent a refund application on 15-5-1981, supported by a certificate-of-posting, and a reminder on 5-3-1982. The Assistant Collector rejected the claim on 17-7-1982, stating that the reminder was received after the six-month time limit under Section 27(1)(b) of the Customs Act, 1962. The Assistant Collector also noted that the initial refund application was not received.
- The Appellate Collector upheld this decision, finding no evidence that the refund application was received within the stipulated time.

Issue 2: Principles of Natural Justice
- The appellants argued that the rejection of their refund claim without a show-cause notice violated the principles of natural justice. They also contended that they were not given a personal hearing.
- The Tribunal found that the memo of appeal indicated a personal hearing was granted, contradicting the appellants' claim. The Tribunal rejected the argument that the personal hearing was merely an interview, noting the appellants' own acknowledgment of a personal hearing in their appeal memo.

Issue 3: Presumption under Section 114 of the Evidence Act
- The appellants argued that the certificate-of-posting should create a presumption that the refund application was received by the Assistant Collector, citing Section 114 of the Evidence Act.
- The Tribunal held that the Evidence Act's provisions do not directly apply to quasi-judicial proceedings before the Assistant Collector. The certificate-of-posting did not specify the sender or the contents of the letter. The Tribunal found it improbable that a significant refund application would be sent by ordinary post without registration. The Assistant Collector's categorical statement that the application was not received was deemed credible, as it was made after due inquiry.

Issue 4: Applicability of the Law of Limitation
- The appellants argued that the law of limitation should apply to the Customs Act, citing various judicial decisions.
- The Tribunal noted that this issue would only be relevant if it were proven that the refund application was indeed submitted. Since it was not proven that the application reached the Assistant Collector, the question of limitation was rendered redundant.

Conclusion:
- The Tribunal dismissed the appeal, holding that there was no proof that the refund application was received by the Assistant Collector. Consequently, the arguments regarding the law of limitation and other related issues were not addressed. The Tribunal emphasized the importance of adhering to procedural requirements and the credibility of quasi-judicial authorities' statements in such matters.