2001 (5) TMI 284 - AT - Customs

Summary

Issues:
1. Refund of excess duty paid by the Appellant.
2. Entitlement to interest on excess duty paid.
3. Refund of demurrage charges paid by the Appellant.

Refund of Excess Duty Paid:
The Appellant imported goods, and the Assistant Collector enhanced the value, which was later accepted as declared by the Appellant by the Commissioner (Appeals). The Appellant sought a refund of excess duty paid and demurrage charges. The Commissioner (Appeals) held that the Appellants are entitled to the refund due to the accepted value but noted the absence of a regular refund claim under Section 27 of the Customs Act. The Appellant argued that the excess duty was charged erroneously and cited legal precedents supporting their claim for refund. The Respondent contended that the cause for refund arises upon the acceptance of the declared value, as per Section 27 of the Customs Act. The Tribunal observed that refund claims must adhere to the Act's provisions, and no provision allows for interest on excess duty or reimbursement of demurrage charges.

Entitlement to Interest on Excess Duty Paid:
The Appellant claimed interest on the excess duty paid at 18% per annum, citing legal cases supporting their entitlement. The Respondent argued that interest is payable only if the amount is not refunded within three months of the refund application, as per Section 27A of the Customs Act. The Tribunal emphasized that the Act does not provide for interest on excess duty collected.

Refund of Demurrage Charges Paid:
The Appellant requested a refund of demurrage charges paid due to delays caused by the Department. The Commissioner (Appeals) noted the absence of following prescribed procedures for claiming demurrage charges. The Appellant relied on legal precedents supporting their claim for the release of goods without demurrage charges. The Respondent contended that demurrage charges are not paid to the Customs Department, and no provision allows for the refund of such charges. The Tribunal upheld the decision of the Commissioner (Appeals) and rejected the appeals, stating that there is no provision in the Customs Act for the reimbursement of demurrage charges.

The judgment emphasized that refund claims, interest entitlement, and demurrage charges reimbursement must align with the provisions of the Customs Act, and no provision allows for interest on excess duty or demurrage charges refund.