2006 (10) TMI 152 - HC - Customs

Summary

Issues:
1. Restoration of a writ petition dismissed in default.
2. Challenge to a notice issued by the Assistant Collector of Customs regarding a refund claim.

Issue 1: Restoration of Writ Petition:
The writ petition in question was dismissed in default on 7-3-2006 due to the absence of the petitioner's counsel. An application was filed for restoration, citing that the matter was not noted in the list, and the counsel was not present in Delhi to seek an adjournment. An affidavit from the counsel's clerk supported this claim. The court allowed the application and restored the writ petition.

Issue 2: Challenge to Notice for Refund Claim:
The writ petition challenged a notice issued by the Assistant Collector of Customs regarding a refund claim of Rs. 1,13,293.20 along with interest. Initially, the petitioner argued that the Customs authorities had no power to demand proof that the burden of customs duty had not been passed on to be eligible for a refund. However, during the case, the Customs Act, 1962 was amended, requiring applicants to provide evidence that the duty burden had not been transferred to others. The court directed the officer to decide on the refund application. The Assistant Collector found that the petitioner failed to prove that the duty burden had not been passed on, leading to the refund amount being directed to the Consumer Welfare Fund.

The petitioner challenged this decision, claiming to have provided sufficient evidence during a personal hearing. However, the Assistant Collector rejected the refund application, stating that the petitioner failed to produce the necessary evidence as required by the Act. The court upheld the Assistant Collector's decision, emphasizing that the petitioner did not meet the evidentiary requirements under Section 27(1) and (2) of the Customs Act. Consequently, the writ petition was dismissed with no costs awarded.

In conclusion, the judgment addressed the restoration of a dismissed writ petition and the challenge to a notice related to a refund claim, emphasizing the importance of providing evidence to support refund applications under the Customs Act.