2017 (1) TMI 340 - AT - Customs

Rejection of refund claim - rejection on the ground that the assessment of bill of entry has not been challenged by the appellant - Held that - I find that the letter dated 16/11/2005 is a simple letter requesting refund of Customs duty and there is no request for re-assessment whatsoever. In these circumstances, where the original assessment has not been challenged by the importer refund cannot be granted - reliance placed in the case of PRIYA BLUE INDUSTRIES LTD. Versus COMMISSIONER OF CUSTOMS (PREVENTIVE) 2004 (9) TMI 105 - SUPREME COURT OF INDIA - appeal allowed - decided in favor of REVENUE.

Summary

Issues: Refund of Customs duty on imported goods challenged by importer, remand for reassessment by Commissioner (Appeals), legality of refund claim without challenging original assessment.

In this case, M/s. SIX-O-TU Investment & Traders Pvt. Ltd. imported goods and paid duty on them. Subsequently, they requested a refund of the duty paid through a letter dated 16/11/2005. The Assistant Commissioner rejected the refund claim on the basis that the assessment of the bill of entry had not been challenged by the importer. The decision was influenced by the precedent set by the Hon'ble Apex Court in the case of Priya Blue Industries - 2004 (172) ELT 145 (SC). Dissatisfied with this decision, M/s. SIX-O-TU Investment & Traders Pvt. Ltd. appealed to the Commissioner (Appeals), who remanded the matter back to the original authority for reassessment of the bill of entry. The Revenue, aggrieved by this decision, brought the matter before the Tribunal.

The crux of the Revenue's argument before the Tribunal was that since the importer did not challenge the assessment, no refund could be granted. They contended that the Commissioner (Appeals) overstepped by remanding the issue for reassessment without proper grounds.

After considering the submissions from both parties, the Tribunal examined the letter dated 16/11/2005 and found it to be a straightforward request for a refund of Customs duty without any mention of a request for re-assessment. Given that the original assessment had not been contested by the importer, the Tribunal upheld the principle established by the Hon'ble Apex Court in the case of Priya Blue Industries, which dictated that a refund cannot be granted in such circumstances. Consequently, the Tribunal allowed the appeal of the Revenue.

The judgment, delivered by Member (Technical) Mr. Raju, emphasizes the importance of challenging the original assessment when seeking a refund of Customs duty on imported goods. It underscores that a mere request for a refund without contesting the assessment does not warrant a refund, as per established legal precedents. The decision highlights the significance of adhering to legal procedures and principles in matters concerning Customs duty refunds, ensuring fair and consistent application of the law.