2017 (8) TMI 301 - AT - Customs

Refund of SAD - time limitation - N/N. 102/2007 dated 14.09.2007 - rejection on the ground that the refund claim was filed after one year from the date of import of goods - Held that - the refund claims in all these appeals pertain to the period of after 01.08.2008 - the judgement of the Hon ble Gujarat High Court in the case of Indian Oil Corporation Ltd. Vs. UOI 2011 (12) TMI 540 - GUJARAT HIGH COURT is squarely applicable to the facts of the present case, whereunder it is held that the limitation prescribed for refund cannot be extended - appeal dismissed.

Summary

Issues:
1. Refund claims for Special Additional Duty (SAD) rejected due to delay in filing.
2. Applicability of limitation period under Notification No.102/2007 dated 14.09.2007 for refund claims.
3. Arguments regarding unintentional delay and procedural non-compliance.
4. Interpretation of the law regarding the extension of limitation period for refund claims.
5. Comparison of judgments by different High Courts on the limitation period for refund claims.

Analysis:
1. The case involved five appeals arising from a common order with similar issues regarding the rejection of refund claims for SAD due to delays in filing. The Adjudicating Authority had sanctioned a partial refund but rejected the balance amount citing the claims were filed after the limitation period of one year from the date of import of goods.

2. The main issue revolved around the interpretation of the limitation period prescribed under Notification No.102/2007 dated 14.09.2007 for filing refund claims. The appellants argued that the delay in filing was unintentional, primarily due to non-receipt of original documents, and should not result in the rejection of the refund claims. The Ld. Consultant contended that the substantive right of refund as per the notification should not be defeated for procedural non-compliance.

3. The Ld. Consultant referred to judgments by the Hon’ble Gujarat High Court and Hon’ble Delhi High Court to support their argument that delays due to genuine reasons should be condoned, emphasizing that the right to refund should not be denied solely based on procedural grounds.

4. On the contrary, the Ld. AR for the Revenue asserted that the limitation period specified under the amended Notification No.102/2007 was clear and that the refund claims filed after one year were time-barred. The Ld. AR distinguished a judgment of the Hon’ble Bombay High Court to emphasize the specific applicability of the prescribed limitation period in the present case.

5. The Tribunal, after considering the arguments from both sides, upheld the applicability of the limitation period as per the amended notification. It cited a judgment by the Hon’ble Gujarat High Court, emphasizing that the limitation prescribed for refund claims cannot be extended, even in cases of genuine delays. Consequently, the appeals were dismissed based on the established legal principles and the specific provisions of the notification.

Overall, the judgment highlighted the importance of adhering to prescribed timelines for filing refund claims and underscored the significance of procedural compliance in availing statutory benefits.