Order Date – 02 May 2023

Parties: M/s Synergy Steels Ltd. Vs Commissioner of Customs, Jaipur

Facts –

• The Appellant, M/s Synergy Steels Ltd., was eligible for exemption of BCD @ 2.50% in terms of Notification No. 50/2017-Cus. dated 30.06.2017 under Sl. No. 368. 
• The appellant by letter dated 23.01.2018 requested the Deputy Commissioner of Customs, Jaipur to reassess the bill of entry and refund the excess duty paid by them. It was reassessed vide order dated 24.02.2018 but failed to refund the amount to the appellant, thus a reminder letter dated 29.04.2019 was submitted. 
• Taking the representation dated 29.04.2019 as the refund claim in terms of the reassessment, the Department issued a show cause notice dated 04.05.2019, treating that the refund claim has been filed beyond one year from the date of reassessment dated 24.02.2018 and therefore the same was barred in terms of Section 27 of the Customs Act.

Issue –

• Whether the refund claim of the appellant is barred by limitation under Section 27 of the Customs Act, 1962?

Order –

• The Tribunal observed that the authorities actually reassessed the bill of entry on 24.02.2018 and found that the appellant had paid excess duty it was therefore obligatory on the part of the authority to refund the said excess amount recovered from the appellant in terms of the prayer made by them for reassessment as well as refund of excess duty amount.
• It was held that the letter dated 23.01.2018 whereby the prayer for reassessment and refund of excess duty paid was made has to be treated as the date on which the refund claim has been made and therefore the same is within the period of limitation of one year as prescribed under Section 27 of the Customs Act.
• After the amendment in 2011, it is no longer necessary for an assessment or reassessment order to be made and the refund can be considered under the provisions of Section 27 of the Act.
• Further the authorities below have wrongly arrived at the decision that the refund claim was made by the appellant on 29.04.2019 and the same was barred by time, being beyond the period of one year from the date of reassessment on 24.02.2018.
• The appeal is allowed.