2018 (10) TMI 567 - AT - Customs

Refund of excess Export duty paid - Exporter did not challenge the assessment order - whether the respondents are eligible for the refund of the amount of excess export duty paid by them on export of iron ore or otherwise? - Held that - The assessment in the instant case cannot be considered final by any stretch of imagination for the simple reason that the same was done subject to the outcome of the analysis of the samples by the Chemical Examiner - refund cannot be denied on this ground - appeal dismissed - decided against Revenue.

Summary

Issues:
1. Eligibility for refund of excess export duty paid on iron ore export.

Analysis:
The appeal before the Appellate Tribunal CESTAT Hyderabad involved the question of whether the respondents were entitled to a refund of the excess export duty paid by them on the export of iron ore. The respondents initially discharged export duty at a higher rate of &8377; 300/- per MTS pending receipt of the Chemical Examiner's report, even though they were required to pay duty at a lower rate of &8377; 50/- per MT based on the Fe content declared in the shipping bill. Upon receiving the report indicating a lower Fe content, the respondents filed a refund claim, which was processed by the Adjudicating Authority under Section 154 of the Customs Act, 1962, and the refund was sanctioned. The Revenue, aggrieved by this decision, contended that the refund claim was not maintainable as the exporter did not challenge the assessment order, which had become final, and the contract was based on the Fe content as per Board Circular No. 24/2004-Cus dated 18.03.2004.

The First Appellate Authority rejected the Revenue's appeal, emphasizing that the assessment was not final as it was subject to the outcome of the analysis by the Chemical Examiner. The Tribunal, after considering the submissions, affirmed the lower authorities' conclusion that the refund claims were valid. It was noted that the Fe content declared in the shipping bill was confirmed by the chemical examiner's report, and the duty was supposed to be discharged at a lower rate. The Tribunal highlighted that the assessment was not final before the receipt of the test report and payment of duty, and the situation was not akin to those covered by Circular No. 24/2004-Cus. The Tribunal held that the findings of the lower authorities were correct, and there was no need for interference with the impugned orders.

In conclusion, the Appellate Tribunal upheld the lower authorities' decisions, stating that the refund claims were justified, and the appeal by the Revenue was rejected. The Tribunal found that the assessment was not final until the chemical examiner's report was received, and the duty was paid at a higher rate than required based on the Fe content. The Tribunal emphasized that the Revenue's contention that the assessment was final from the outset was baseless, and the situation did not align with a normal final assessment process. The Tribunal deemed the Revenue's argument devoid of logic and upheld the legality of the refund granted to the respondents.