2019 (12) TMI 793 - AT - Customs

Refund of Excess Customs Duty paid - fertilizers imported on which they have paid excess Customs duty taking the wrong value for the purpose of calculation - finalization of provisional assessment - rejection of refund on the ground that the assessments which were done by the adjudicating authority were not challenged by the assessee - principles of natural justice - HELD THAT - The issue has now been settled by the larger Bench of the Hon ble Apex Court in the case of ITC Ltd. 2019 (9) TMI 802 - SUPREME COURT , where it was held that The appellant was not entitled to the refund without having first challenged the assessment order itself and therefore the impugned order denying such refund is correct. Principles of natural justice - appellant also claims that they were not given an opportunity of being heard before finalizing the assessment - HELD THAT - Nevertheless, the fact remains that such assessment has not been challenged at all by the appellant. This appeal is not with respect to finalization of provisional assessment but with respect to refund - the rejection of the refund by the impugned orders of the first appellate authority are correct and call for no interference. Appeal dismissed - decided against appellant.

Summary

Issues:
Delay in filing appeals, rejection of refund claims based on non-challenge of assessment orders, denial of principles of natural justice in finalizing assessments.

Delay in Filing Appeals:
The Appellant filed an affidavit explaining the delay in filing appeals, citing unintentional delay and reliance on a Supreme Court judgment. The Tribunal allowed the prayer for condoning the delay based on the submissions made by the Appellant's Advocate.

Rejection of Refund Claims Based on Non-Challenge of Assessment Orders:
The Appellant filed refund claims for imported fertilizers, alleging excess Customs duty payment due to wrong value calculation. The lower authority rejected the refund claims, upheld by the first appellate authority for not challenging the assessment orders. The Tribunal noted that refund cannot be allowed unless the assessment itself is challenged, citing various judicial decisions including the cases of Priya Blue Industries and Flock India Ltd.

Denial of Principles of Natural Justice in Finalizing Assessments:
The Appellant claimed denial of natural justice as they were not given a personal hearing before finalizing the assessment. However, the Tribunal emphasized that the issue at hand pertained to refund and not the finalization of provisional assessment. Referring to a Supreme Court judgment, the Tribunal held that the rejection of the refund by the first appellate authority was correct as the assessment order was not challenged by the Appellant.

The Tribunal considered arguments from both sides and analyzed the core issue of whether the rejection of the refund claims based on non-challenge of assessment orders was justified. It referenced various judicial decisions, including those by the Hon'ble Apex Court and High Courts, to establish the principle that refund claims cannot be sanctioned unless the assessment itself is challenged. The Tribunal upheld the rejection of the refund claims, emphasizing the importance of challenging assessment orders before seeking refunds, even in cases of self-assessment.

In conclusion, the Tribunal upheld the impugned orders, rejecting the appeals and maintaining that the Appellant was not entitled to a refund without challenging the assessment order. Despite the Appellant's claim of denial of natural justice in finalizing assessments, the Tribunal found no grounds for interference based on the settled legal principle highlighted in the larger Bench judgment of the Hon'ble Supreme Court.