CESTAT sets aside Appeal against Air Asia on Issue of Customs Duty Refund citing Payment of Duty under Protest [Read Order]
The CESTAT set aside the impugned orders and remand the matter to the Commissioner(Appeals) to decide the issue afresh on merit after affording an opportunity of hearing to the appellant and allowed the appeal
![CESTAT sets aside Appeal against Air Asia on Issue of Customs Duty Refund citing Payment of Duty under Protest [Read Order]](https://www.taxscan.in/wp-content/uploads/2025/01/CESTAT-CESTAT-Bangalore-Excise-and-Customs-Air-Asia-Air-asia-Customs-Duty-Refund-case-TAXSCAN.jpg "CESTAT sets aside Appeal against Air Asia on Issue of Customs Duty Refund citing Payment of Duty under Protest [Read Order]")
In a recent ruling, the Bangalore bench of the Customs, Excise & Service Tax Appellate Tribunal ( CESTAT ) sets aside the customs appeal on issue of refund duty paid by Air Asia based on re-classification of Aircraft parts, as the duty was already paid under protest. The Commissioner (Appeals) has rejected all these appeals on the ground that the appellant, Air Asia...
In a recent ruling, the Bangalore bench of the Customs, Excise & Service Tax Appellate Tribunal ( CESTAT ) sets aside the customs appeal on issue of refund duty paid by Air Asia based on re-classification of Aircraft parts, as the duty was already paid under protest.
The Commissioner (Appeals) has rejected all these appeals on the ground that the appellant, Air Asia (India) Private Limited had not complied with the provisions of Section 129E of the Customs Act, 1962 by depositing 7.5% of the duty or penalty disputed.
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It was argued that the problem stems from duty refunds due to the reclassification of imported airplane parts. added that during the evaluation of the corresponding Bills of Entry, the full amount of duty was paid under protest. He provided evidence by placing a worksheet with the challan data and the date of duty payment. Therefore, as the Commissioner (Appeals) mistakenly noted in the contested ruling, there is no need to pay 7.5% of the duty as a pre-deposit.
It was further asserted that the orders were issued ex-parte and that the appellants were not given a fair chance to plead their case. On like facts, the Commissioner of Appeals had previously given the matter due consideration and granted their appeals. The Revenue's AR does not contest the duty payment under protest.
In contrast to the current case, where the appellant paid the full duty under protest during the Bills of Entry assessment, the Commissioner (Appeals) has not decided the matter on merit and has dismissed the appeals based solely on the failure to make a pre-deposit of 7.5% of the duty, according to a two-member bench consisting of Mrs. R. Bhagya Devi, Member (Technical), and Dr. D.M. Misra, Member (Judicial).
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The CESTAT set aside the impugned orders and remand the matter to the Commissioner (Appeals) to decide the issue afresh on merit after affording an opportunity of hearing to the appellant and allowed the appeal.
To Read the full text of the Order CLICK HERE
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