Importer is Eligible to Claim Refund of Customs Duty of Self-assessed Bills of Entry u/s 27 of Customs Act: CESTAT [Read Order]

The Kolkata bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the importer was eligible to claim the refund of customs duty of self-assessed bills of entry defined under section 27 of the Customs Act,1962. 

Uma Export Ltd, the respondent-assessee imported green peas (Pisum Sativum) and paid the Customs duty and later filed the refund claim of excess paid customs duty before the adjudicating authority and also applied for an amendment to the Bill of Entry. 

The revenue appealed against the order passed by the adjudicating authority for granting of refund of self-assessed Bills of Entry under Section 27 of the Customs Act,1962, and against the original assessment modification. 

Amit Ashwasi, the counsel for the assessee contended that according to section 27 of the Customs Act, any person who has either paid duty or interest or the burden thereof may claim a refund. 

Also submitted that the order of self-assessment was required to be followed unless modified before the claim for refund is entertained under Section 27 of the Customs Act and the refund proceedings are like execution for refunding amount. 

Mihir Rajan, the counsel for the revenue contended that the Importers had not produced any evidence of getting the original assessment modified under Section 149 or Section 154 of the Customs Act and even filing any application under these Sections would not entitle them to file the refund claim under Section 27 of the Customs Act. 

The Bench observed that in the case of ITC Vs CCE Kolkata, the court held that it was not open to the authority which processes the refund to make a fresh assessment on merits and to correct the assessment based on mistake or otherwise and in the present case this decision was not applicable. 

The two-member bench comprising Muralidhar (Judicial) and Rajeev Tandon (Technical) held that the assessee is eligible for a refund while dismissing the appeal filed by the revenue. 

To Read the full text of the Order CLICK HERE

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