1994 (3) TMI 197 - AT - Customs

Summary

Issues Involved:
1. Whether the goods in question were imported by the appellants on behalf of the National Remote Sensing Agency.
2. Whether remedy by way of a refund claim was available to the appellants.
3. Whether the claim for refund of duty has to be rejected due to the failure to file the certificates as required in terms of Notification No. 424/86-Cus., dated 28-8-1986 at the time of importation.

Detailed Analysis:

1. Whether the goods in question were imported by the appellants on behalf of the National Remote Sensing Agency.
The appellants provided a Letter of Authority No. NRSA/P/FPO-8079 dated 24-6-1986 issued by the National Remote Sensing Agency, which appointed M/s. India Photographic Company Ltd. as their agent for importing goods under the Open General Licence. The goods were cleared under this licence, as per Appendix 6(5) of the A.M. 1985-88 Import Policy, which permits approved Research and Development organisations to import goods. The appellants also presented an agreement and an affidavit from the National Remote Sensing Agency authorizing them to import goods and file refund claims on their behalf. Therefore, it was concluded that the appellants imported the goods on behalf of the National Remote Sensing Agency.

2. Whether remedy by way of a refund claim was available to the appellants.
The respondents argued that since the Bill of Entry was signed by the Assistant Collector, the assessment order should be considered as passed by the Assistant Collector, and no refund claim under Section 27 of the Customs Act, 1962 was permissible. However, the Tribunal found that the assessment by the concerned officer was merely countersigned by the Assistant Collector without any speaking order. Thus, the remedy by way of a claim for refund under Section 27(1) of the Act was deemed available to the appellants.

3. Whether the claim for refund of duty has to be rejected due to the failure to file the certificates as required in terms of Notification No. 424/86-Cus., dated 28-8-1986 at the time of importation.
The appellants contended that they were unable to file the required certificates at the time of clearance because the original copies were retained by Customs in connection with another consignment. They argued that this was a technical lapse and should be condoned since the application for the certificates had been made before the importation of the goods, and the certificates were issued before the importation. The Tribunal referred to several precedents, including cases of Hindustan Machine Tools Ltd., Oil India Limited, and Mangalore Chemicals & Fertilizers Ltd., which supported the view that procedural lapses in obtaining certificates should not negate the claim for exemption if substantial compliance was achieved. The Tribunal concluded that the appellants were entitled to claim a refund, provided the original certificates covered the goods in question and were valid.

Conclusion:
The Tribunal remanded the case to the Assistant Collector for re-adjudication, instructing the adjudicating authority to inspect the original copies of the relevant NMI and Duty Exemption Certificates to verify their validity and coverage of the goods in question. The adjudicating authority was also directed to grant a personal hearing to the appellants before deciding the matter. The appeal was thus allowed by way of remand.