2018 (5) TMI 1476 - AT - Customs

Refund claim - case of Revenue is that no refund could be sanctioned unless the incorrect assessments were modified in appeal on the basis of the CBEC Circular No.24/2004-Cus dt. 18/03/2004 - case of appellant is that that the Commissioner(Appeals) has wrongly held that the assessment carried out by the Department was accepted in toto by the appellant and once the assessment is accepted, the appellant has no cause of action to challenge the said assessment and the Commissioner (Appeals) has no jurisdiction in such matters. Held that - case is remanded back to the Commissioner(Appeals) to decide the same on merit on the basis of the documents which may be produced by the assessee in support of his submission - appeal allowed by way of remand.

Summary

Issues: Appeal against rejection of refund claim based on incorrect assessment and jurisdiction of Commissioner(Appeals) in challenging accepted assessments.

Analysis:
1. Issue 1 - Incorrect Assessment and Refund Claim:
The appellant filed two Bills of Entry for waste paper consignments and paid duties based on a higher rate. Subsequently, the appellant learned about a reduced duty rate through a notification. The department informed that no refund could be sanctioned without modifying the incorrect assessments based on CBEC Circular No.24/2004. The appellant challenged the rejection of refund claim before the Commissioner(Appeals) who upheld the rejection. The appellant argued that the impugned order was contrary to the Circular and court decisions. The appellant contended that the Commissioner(Appeals) wrongly held that once the assessment is accepted, there is no cause of action to challenge it. The appellant cited the CBEC Circular, Supreme Court judgments, and a Tribunal decision supporting the need for correct assessment even if the benefit was not claimed initially.

2. Issue 2 - Jurisdiction of Commissioner(Appeals):
The Commissioner(Appeals) held that once an assessment is accepted, the appellant cannot challenge it, and the Commissioner lacks jurisdiction in such cases. However, the Tribunal found that the Commissioner's decision was contrary to the CBEC Circular No.24/2004, which mandates challenging the assessment for claiming a refund. The Tribunal noted that the Circular was based on Supreme Court judgments emphasizing the necessity of challenging assessment orders for refund claims. Consequently, the Tribunal set aside the impugned order, stating that the case should be remanded to the Commissioner(Appeals) for a merit-based decision considering the documents submitted by the appellant.

This detailed analysis of the judgment highlights the issues of incorrect assessment leading to a refund claim rejection and the jurisdiction of the Commissioner(Appeals) in challenging accepted assessments, providing a comprehensive overview of the legal arguments and the Tribunal's decision in this case.