Customs – Cestat New Delhi: As 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 – Prayer for reassessment and request refund of excess duty paid has also to be treated as the date on which the refund application was made, hence application is not time barred – Appeal allowed [Order attached]

Your free trial / membership plan is expired.
Kindly subscribe to get complete access to indirect tax updates and issue wise cases
Why subscribe to us ?
Get complete access to news updates and download copy of case laws/ notification/ circular etc.
Be a part of our WhatsApp group and read real time indirect tax updates
Access to ready case laws of General Issues and Industry Wide Issues under GST
Access to relevant provisions of law / circular in respect to the issues, along with trail of their amendments
Write your GST query to us for evaluation
Subscription Charges:*
Indirect tax updates -
6 months @299 / 1 Year @499 only
Indirect tax updates + Issue wise cases -
6 months @1199 / 1 Year @1999 only
*Plus applicable GST
Admin
03-May-2023 23:09:16
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.
Related Post
Post Category
Your free trial/ membership plan has expired. Kindly subscribe to get complete access of tax news updates.
Why subscribe to us ?
Get complete access to news updates
Access to the Order Copy of the case law/ Notification/ Circular etc
Be a part of our Whatsapp group and read real time tax updates
Access to ready case laws/ circulars on general and industry-wide issues under GST
Submit your GST issues to us for evaluation