In a recent ruling, the CESTAT Bangalore bench observed that the assessee is not entitled to claim refund of excess customs duty paid if the assessment order has not been challenged earlier. The decision was on the basis of the Apex Court decision in M/s Priya Blue Industries Ltd. Vs. Commissioner of Customs.
In the instant case, the assessee is engaged in the trading of various consumer products. By mistake they paid higher rate of customs duty on certain imported goods which were eligible for exemption under the Tariff Act and relevant notifications. The assessee, after realizing the mistake, claimed for refund which was rejected by the Department by observing that the proper course for claiming refund of excess duty would be to file appeal against the assessed Bills of Entry, holding that Section 149 of the Customs Act deals with only amendment of Bills of Entry and not for reassessment of the Bills of Entry.On appeal, the first appellate authority confirmed the order.
While rejecting the plea of the appellant-assessee, the Judicial Member, relying upon the Supreme Court decision, held that the appellants are not entitled to claim refund unless they challenge the assessment order which has not been done in the present case.
Read the full text of the order below.