2017 (3) TMI 541 - AT - Customs

Refund of SAD - time limitation - whether the claim of refund of SAD which regard to 22 Bills of Entry which have been filed during the period 29.01.2010 to 20.09.2010 is barred by limitation or not? - Held that - respondent-assessee had filed the refund claim, first of all on 20.10.2010, when it had informed the ADC/ICD in writing that they are entitled to refund claim of SAD but the formal claim cannot be filed immediately, as the documents are lying in the custody of DRI, pursuant to search and seizure which took place on 30.09.2010. Accordingly, the refund claim had been made on 20.10.2010, which was well within time - there is no error in the order of the Commissioner (Appeals), wherein he has directed to exclude the time for calculation of limitation, when the documents were lying in the custody of DRI. The same is in agreement with the legal principles and the provisions of the Limitation Act - respondent-assessee is entitled to refund of their SAD - appeal dismissed - decided against Revenue.

Summary

Issues:
Whether the claim of refund of Special Additional Duty (SAD) regarding 22 Bills of Entry filed during a specific period is time-barred or not.

Analysis:
The respondent-assessee imported scrap and filed 22 Bills of Entry between January and September 2010. Following a search and seizure by the Directorate of Revenue Intelligence (DRI) in September 2010, the relevant documents for the refund claim were held by the DRI. The assessee informed the authorities about the situation and requested an extension for filing the formal claim. Despite delays caused by the DRI, the refund claim was eventually filed in May 2013. The Adjudicating Authority initially held the claim as time-barred, citing a 12-month limitation period from the date of duty payment as per Circular No.16/2008 CUS. The Commissioner (Appeals) overturned this decision, excluding the time when the documents were with the DRI from the calculation of the limitation period, allowing the claim to be within the 12-month timeframe.

The Revenue appealed, arguing against excluding the period when documents were not in the assessee's possession for claiming the refund. The Tribunal found that the initial refund claim was made in October 2010, well within time, considering the circumstances with the DRI. It upheld the Commissioner (Appeals) decision to exclude the time when the documents were with the DRI from the limitation calculation, in line with legal principles and the Limitation Act. Consequently, the appeal of the Revenue was dismissed, affirming the right of the respondent-assessee to the SAD refund. The Adjudicating Authority was directed to process the refund within 60 days with applicable interest if not already done so.