Duty remission u/s 23 applicable only on Imported Goods, Claim of Refund not sustainable: CESTAT [Read Order]

The single-member bench of the Hyderabad Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has held that the duty remission under section is applicable only on imported goods and since the appellants are not proven as imported goods lost or destroyed the claim of refund is not sustainable.

The appellant, M/s. Andhra Sugars Ltd challenged the Order-in-Appeal dated 25.7.2018 passed by the Commissioner(Appeals) whereby he upheld the lower authority's order rejecting the appellant's refund claims.

The appellant imported sulphur in bulk and filed Bills of Entry as per the quantity indicated in the Bills of Lading and paid duty. The appellant claimed a refund when he found that lesser quantities of the goods were delivered by the Master of the Vessel and therefore, less duty was required to be paid which was rejected by the lower authority.

Shri A.V.L.N. Chary, authorised representative for the department contended that the goods apart from the assertion of the appellant and the Joint Survey Report relied upon by the appellant were inconclusive and do not establish that the goods were landed short of the quantity mentioned in the Bills of Lading.

Counsel for the appellant, Advocate Shri N. Anand stated that it was entitled to remission of duty as per section 23(1) of the Customs Act.

It was observed by the Tribunal that section 23(1) deals with such cases where the goods which are imported have been lost or destroyed at any time before their clearance for home consumption. Further observed that section 23(1) is not applicable since no case has been made out by the appellant that the goods have been imported as per the Bill of Lading and they have been destroyed at any time before their clearance for home consumption.

Mr P Venkata Subba Rao, member (technical) viewed that self-assessment of duty by the appellant has attained finality and a refund cannot be sanctioned to modify the assessment by reducing the quantity of goods as claimed.

The Tribunal while dismissing the appeal, upheld the impugned order as the draught survey report and other reports based on which the appellant claimed that there was a short landing of the goods are inconclusive.

To Read the full text of the Order CLICK HERE

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