2024 (1) TMI 535 - AT - Customs

Sanction of refund claim - eligibility for refund filed under section 26A of the Customs Act, 1962 - monetary limit involved in the appeal - HELD THAT - It is to be noted that the department does not deny the claim of the respondent for eligibility of drawback. This aspect has been taken note of by the Commissioner (Appeals) who has directed the respondent to make a representation for claim of drawback. Further, the original authority has made inquiry and on verification found that the respondent is eligible for refund. For these reasons, there are no merit in the appeal filed by the department. Further, the amount involved is less than Rs.50 lakhs and there is no legal issue or the issue is not recurring in nature. The department s appeal falls within the litigation policy also and is to be dismissed. The impugned order is sustained. The appeal filed by the department is dismissed.

Summary

Issues Involved: Appeal against rejection of refund claim under sec. 26A of Customs Act, 1962.

Summary:
1. Appeal against Commissioner of Customs (Appeals) Order:
The department filed an appeal against the rejection of their appeal by the Commissioner of Customs (Appeals) regarding the sanction of refund by the original authority under sec. 26A of the Customs Act, 1962.

2. Department's Argument:
The department argued that the respondent should be eligible for drawback only, not for refund under sec. 26A, as the goods were re-exported. They contended that the original authority should not have sanctioned the refund claim.

3. Respondent's Argument:
The respondent argued that the department's appeal is not maintainable under the litigation policy due to the lack of legal questions and the non-recurring nature of the issue, especially considering the amount involved being less than Rs.50 lakhs.

4. Facts and Decision:
The respondent had imported goods, paid import duties, and later re-exported the goods. They filed a refund claim under sec. 26A, which was sanctioned by the original authority after verification. The Commissioner (Appeals) rejected the department's appeal, directing the respondent to prefer a drawback claim under sec. 74 of the Customs Act, 1962.

5. Tribunal's Decision:
After hearing both sides and reviewing the submissions, the Tribunal noted that the department's main grievance was the eligibility for refund under sec. 26A, not the eligibility for drawback. Since the respondent was found eligible for refund and the amount involved was less than Rs.50 lakhs with no legal issue, the department's appeal was dismissed in line with the litigation policy.

6. Conclusion:
The Tribunal sustained the impugned order, dismissing the appeal filed by the department against the rejection of the refund claim under sec. 26A of the Customs Act, 1962.