2019 (11) TMI 196 - HC - Customs

Refund of Customs Duty - refund claim rejected as premature on the ground that the petitioner has not challenged the assessment - HELD THAT - As the learned counsel for the petitioner fairly submitted before this Court that liberty may be given to the petitioner to challenge the said self assessment before the concerned Appellate Authority, this Writ Petition is disposed of by granting liberty to the petitioner to file such appeal against the self assessment within a period of two weeks from the date of receipt of a copy of this order.

Summary

Issues Involved:
Challenge to rejection of refund claim as premature due to failure to challenge assessment.

Analysis:
In this case, the petitioner challenged the rejection of their refund claim by the respondent, which was based on the grounds of prematurity due to the petitioner not challenging the assessment. The petitioner, engaged in manufacturing automotive fasteners, imported goods from the Republic of Korea, exempt from Basic Customs Duty subject to proof of origin. Despite not having the required certificate of origin at the time of import, the petitioner later obtained it and filed a refund claim, which was rejected for not challenging the assessment.

The petitioner's counsel argued, citing a recent Supreme Court decision, that challenging the assessment is a prerequisite for considering a refund claim. The respondent's counsel contended that the rejection was justified as the assessment was not questioned. The court examined the facts, noting the necessity of the certificate of origin for duty exemption and the petitioner's failure to challenge the assessment. Referring to a recent Apex Court decision, the court emphasized the need to modify or set aside the assessment before entertaining a refund claim.

Ultimately, the court granted the petitioner liberty to challenge the self-assessment within two weeks, allowing for subsequent refund proceedings based on the appeal's outcome. The court's decision was based on the petitioner's timely refund application and the requirement to address the assessment before pursuing a refund claim. This comprehensive analysis highlights the importance of challenging assessments for refund claims and the procedural steps necessary for seeking redress in such cases.