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Issues involved:
The issue involved in this case is whether the appellants are entitled to a refund of duty paid on goods that were never actually received in Calcutta. Summary: 1. Background and Assessment of Duty: The appellants placed an order for valve spares with a foreign supplier, and upon receiving the documents, filed a Bill of Entry and paid the assessed duty of Rs. 1,24,966.00. However, it was later discovered that the carton meant for the appellants had not arrived, but instead, a carton meant for another company had been received. 2. Refund Claim and Rejection: The appellants filed a refund claim for the duty paid, stating that the goods had not actually arrived in Calcutta as per Customs Appraisement. The claim was rejected by the Assistant Commissioner of Customs as time-barred under Section 27 of the Customs Act, 1962. The appeal against this rejection also failed before the first appellate authority, leading to the appeal before the Tribunal. 3. Appellant's Argument: The consultant for the appellants argued that the duty paid was an advance deposit with the government, and as the goods never arrived, no duty should be payable. He contended that the Customs Act should not apply to goods that were not landed. 4. Tribunal's Decision: After considering the submissions, the Tribunal referred to previous decisions and held that no duty liability can be created for goods that have not arrived. The amount deposited by the appellants was deemed an advance deposit, not subject to the limitations of Section 27. Therefore, the Tribunal allowed the appeal, setting aside the previous order and granting consequential relief to the appellants.
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