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2025 (3) TMI 342 - AT - CustomsRefund of excess duty paid - time limitation - requirement of challenging assessment orders - Sections 149 and 154 of customs Act - HELD THAT - The appellant filed various Shipping Bills for export of CPC which were assessed as filed by the appellant incorporating the calculation relating to Cess/Cesses and therefore levying the same at the time of export. It is a recorded fact that the Shipping Bills were assessed finally and that recourse to provisions of Section 18 of the Customs Act was not resorted to. Thus for claiming refund of excess duty paid the assessee-appellant filed refund claims under Section 27 of the Customs Act. The impugned refund claims were filed well beyond the prescribed timelines under Section 27 of the act ibid. It also flows from records that the said Cess was neither paid under protest nor the assessment of the Shipping Bills made under Section 17 were appealed against as warranted in law. The lower authorities have adverted to the ruling of the hon ble apex court in the case of Priya Blue Industries Ltd. vs. Commissioner 2003 (11) TMI 600 - SC ORDER to state that the assessment finalized was not challenged by filing an appeal and therefore the refund claims were not maintainable. A person aggrieved by any assessment order is required to file an appeal against the said assessment undertaken in respect of the shipping bills for which refund is sought to have the said assessment order nullified - The law under Section 149 of the Act provides for amendment of documents. It categorically refers therein to section 30 and 41 of the Customs Act thereby implying reference to Bill of Entry and Shipping Bill i.e. import and export documents respectively. It may at this juncture be pointed out that even a recourse to such amendment provisions is not completely open ended and would be subject to stipulations as prescribed in law. The orders of both the lower authorities are well reasoned and self-speaking concisely amplifying the grounds on which basis provisions of Section 149 and Section 154 of the Customs Act cannot be resorted to and made applicable to the issue herein. The appellant had themselves filed the shipping bills in the manner as aforestated incorporating the said cess. It is apparent that there is no arithmetical or clerical mistake in the assessments so done. The assessment to cess is indeed a consequence of conscious action taken by both the sides. Irrespective of the fact of whether it being the right or wrong course of action it cannot be considered as error arising from an accidental slip or omission in the decision or order of the assessing authority hence the question of invoking the provisions of Section 154 for correction of clerical/arithmetical error cannot be applied to in the present matter. Conclusion - i) A refund claim is not an Appeal proceeding. The Officer considering a refund claim cannot sit in Appeal over an assessment made by a competent Officer. ii) The provisions of Sections 149 and 154 cannot be used to bypass the requirement of challenging assessment orders through an appeal process. The order of the lower authority is therefore maintained and the appeal filed is dismissed.
ISSUES PRESENTED and CONSIDERED
The core legal questions considered in this judgment include:
ISSUE-WISE DETAILED ANALYSIS Refund Claims and Limitation under the Customs Act The relevant legal framework involves Section 27 of the Customs Act, which prescribes the timeline for filing refund claims. The Court noted that the appellant filed the refund claims beyond the prescribed period. The Court interpreted the law, emphasizing that the refund claims were not maintainable as they were not filed within the statutory period. The Court relied on the precedent set by the Supreme Court in Priya Blue Industries Ltd. v. Commissioner, which held that without challenging the assessment order, refund claims could not be maintained. Levy of Cess on Calcined Petroleum Coke The appellant argued that CPC, being a petroleum product, was not subject to Cess under the Coal Mine (Conservation and Development) Act, 1974. The Court acknowledged that CPC was not coal and thus not liable for Cess under the said Act and Notification No.SO/727/(E). However, the Court concluded that the refund was not rejected on merits but due to procedural and legal technicalities, primarily the failure to challenge the assessment orders. Application of Sections 149 and 154 of the Customs Act The appellant sought to amend the shipping bills under Section 149 and correct any clerical errors under Section 154. The Court examined these provisions, noting that Section 149 allows amendments to documents based on existing documentary evidence at the time of export, while Section 154 addresses clerical or arithmetical errors. The Court found that the appellant's situation did not fit within these provisions, as the issue was not a clerical error but a matter of assessment that required an appeal to be challenged. Requirement to Challenge Assessment Orders The Court emphasized the necessity of challenging assessment orders through an appeal process to claim a refund. The Court cited the Supreme Court's decision in Priya Blue Industries Ltd., which underscored that a refund claim could not be entertained unless the assessment order was modified or nullified through an appeal. The appellant's failure to appeal the assessment orders rendered the refund claims inadmissible. Unjust Enrichment The appellant argued that there was no unjust enrichment in this case. However, the Court did not delve deeply into this issue, as the primary basis for dismissing the refund claims was procedural non-compliance rather than the substantive merits of unjust enrichment. SIGNIFICANT HOLDINGS The Court upheld the lower authorities' decisions, emphasizing the following principles:
The Court dismissed the appeal, maintaining the order of the lower authority and reinforcing the necessity of adhering to procedural requirements for challenging assessments and claiming refunds under the Customs Act.
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