2024 (12) TMI 1041 - HC - Customs

Interpretation of time limit for filing refund claim under Customs Act, 1962 in case of provisional assessment - time is to be considered from the date of payment of duty or from the date of finalization of assessment in case where assessment is provisional - Whether in the facts and circumstances of the case, the Hon'ble CESTAT is right in allowing the appeal of the Respondent, even when the Respondent had filed Refund claim beyond one year from the date of payment of duty? HELD THAT - It was case of the assessee that the refund claim has been filed after one year of date of payment of duty, but it is within one year from the date of finalization of the provisional assessment. The Tribunal relying on the case of BHARAT SHIP BREAKERS CORPORATION, RISHI SHIP BREAKERS VERSUS COMMISSIONER OF CUSTOMS, JAMNAGAR (PREV.) 2023 (3) TMI 1547 - CESTAT AHMEDABAD allowed the appeal. In view of the similar facts in case of THE COMMISSIONER, CUSTOMS (PREVENTIVE) VERSUS M/S SHITAL ISPAT PVT. LTD. 2024 (9) TMI 1669 - GUJARAT HIGH COURT , these appeals being devoid of any merit, no questions of law much less any substantial questions of law arises from the impugned order passed by the CESTAT. Appeal dismissed.

Summary

Issues:
Interpretation of time limit for filing refund claim under Customs Act, 1962 in case of provisional assessment.

Analysis:
The judgment involves appeals filed under Section 130 of the Customs Act, 1962 concerning the time limit for filing refund claims. The primary issue revolves around whether the one-year time limit for filing a refund claim, as per Notification No. 102/2007-Customs, should be calculated from the date of payment of duty or the date of finalization of assessment in cases of provisional assessment. The Court considered previous decisions and interpretations, including a case dismissed by the Court previously, to analyze the legal provisions and relevant notifications.

The Court referred to Section 27(1B)(c) of the Act, which specifies that the limitation period for claiming a refund after provisional duty payment starts from the date of final assessment. The judgment highlighted that the Tribunal correctly interpreted this provision and emphasized that the date of payment should be determined based on the final assessment date in cases of provisional assessment. The Court also referenced a Delhi High Court decision to support this interpretation.

Furthermore, the judgment discussed Circular No. 23 of 2010/custom, emphasizing that the date of payment of provisional duty, not the final adjudication date, is crucial for calculating the limitation period for refunds. The Court rejected the argument that the notification could restrict the benefit or impose more rigorous terms than the Act, emphasizing that notifications cannot curtail the period of limitation under Section 27 of the Act.

The Court concluded that the date of making a refund application should be considered from the date of final assessment, not the date of provisional duty payment. It upheld the Tribunal's decision to allow the refund claim filed within one year from the final assessment date. The judgment dismissed the appeals, stating that no substantial questions of law arose from the CESTAT's order, as similar issues had been previously addressed and decided by the Court.