1990 (1) TMI 202 - AT - Customs

Summary

Issues:
- Appeal against the order of the Collector (Appeals) regarding the import of goods.
- Dispute over the applicability of Sec. 27 of the Customs Act for claiming refund of duty.
- Consideration of Sec. 74 of the Customs Act in case of re-exported goods.
- Decision on whether duty paid on goods not delivered can be refunded under Sec. 27.

Analysis:
The appeal was filed against the order of the Collector (Appeals) concerning the import of goods, specifically an electric typewriter that was missing from a consignment and replaced with print wheels. The appellants sought a refund of duty under Sec. 27 of the Customs Act, which was rejected by the authorities, arguing that the benefit under Sec. 74 should have been claimed since the goods were re-exported. The department did not dispute the facts but contended that the benefit under Sec. 74 should have been availed of instead of claiming a refund. However, the Tribunal noted that the goods were not taken delivery of, remained in Customs custody, and were re-exported without being cleared by the importers, leading to the conclusion that the duty was paid on goods not delivered to them.

The Tribunal analyzed Sec. 27 of the Customs Act, which allows for a refund of duty paid by an importer in cases where the goods were not delivered to them. Since the duty was paid on the package that was not taken possession of by the importers, the Tribunal held that the claim for a refund under Sec. 27 was valid. The Tribunal emphasized that the duty was paid on goods that were not delivered, making it unnecessary to consider Sec. 74 for claiming drawback on re-exported goods. Therefore, the Tribunal allowed the appeal, remanding the matter to the Assistant Collector for the consideration of the refund claim and the granting of consequential relief. The decision clarified that in cases where duty is paid on goods but not delivered, Sec. 27 of the Customs Act can be invoked for a refund, as demonstrated in this particular case involving the import of goods with a missing item.