1991 (5) TMI 133 - AT - Customs

Summary

Issues:
1. Refund claim rejection by Collector of Customs (Appeals)
2. Interpretation of Sections 15, 27, and 23 of the Customs Act, 1962
3. Applicability of deemed protest for duty payment
4. Timeliness of refund application

Analysis:
The appeal was filed against the Collector of Customs (Appeals) order confirming the rejection of a refund claim by the Assistant Collector. The dispute arose when the appellants claimed a refund for a shortage of goods detected after paying duty on imported goods. The key arguments revolved around the interpretation of Sections 15, 27, and 23 of the Customs Act, 1962. The consultant for the appellants contended that the limitation period for refund should start from the date of entry inwards of the vessel, relying on Section 15. However, the Tribunal rejected this argument, emphasizing that Section 27(1)(b) mandates the refund application within six months from the date of duty payment. Therefore, the limitation period starts from the payment date, not the vessel's arrival date.

Regarding the deemed protest for duty payment, the consultant argued that requesting a survey of goods constituted a protest, entitling them to an extended limitation period. The Tribunal dismissed this argument, stating that no formal protest was lodged during the duty payment. The mere request for a survey did not equate to a protest under the Customs Act. Additionally, the consultant's assertion that the refund application date should be considered the date of submission, not receipt by the Assistant Collector, was refuted. The Tribunal clarified that the application must reach the Assistant Collector to trigger the limitation period, which starts from the receipt date.

Lastly, the consultant invoked Section 23(1) for duty remission due to goods loss before home consumption clearance. However, the Tribunal highlighted that the case pertained to a refund claim under Section 27, not duty remission under Section 23. The appellants failed to establish grounds for invoking Section 23. Consequently, the Tribunal dismissed the appeal, finding no merit in the arguments presented. The original refund claim rejection was upheld based on the specific provisions and requirements outlined in the Customs Act, 1962.