Order date: 25 January 2023

Parties: Principal Commissioner of Customs (Import & General) V/s Sysco India Limited

Facts –

• The Respondent’s, CISCO SYSTEMS INDIA PVT LTD, claim of refund of excess duty paid was rejected on the ground that it is beyond the period of limitation as prescribed under Section 27 of the Customs Act.
• It is the Revenue’s case that since the duty was initially paid on the enhanced value without protest, the respondent’s claim for refund, which was made beyond the period of one year from the date of payment of duty, is barred by provisions of Section 27(1) of the Customs Act.  

Issue –

• Whether Respondent’s Claim for refund of tax is correct?

Order –

• The Hon’ble High Court observed that the Petitioner (Authorities) have denied reduction of duty to respondent on the ground that its application for refund was beyond the period of limitation, without considering respondents claim of custom duty already paid under protest.
• After revaluation by authorities enhanced the declared value by 46% of the Global Price List for the relevant years 2004-07, for which respondent filed an application to refund the excess duty paid which was rejected by authorities as claim was barred by time. 
• The Court found it difficult that payment of custom duty imposed pursuant to an order while appealing the same can be construed as payment of duty without protest. The very act of filing an appeal against an order imposing customs duty is a protest against the duty as assessed. The entire purpose of such an appeal is to seek reduction of the levy. It is, thus, obvious that the assessee does not accept the said levy and, payment of the same would necessarily have to be construed as payment under protest.
• Hence, the duty paid by the respondent on the enhanced value of the goods is required to be accepted as duty paid under protest.