The Chennai bench of Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has held that mere observation that payments cannot be verified cannot be a ground to deny the claim of customs duty refund.
M/s. Hindustan Motors Ltd, the appellant challenged the Order-in Appeal passed by the Commissioner (Appeals), Indore wherein the refund claim of Rs 43,46,830/- has been rejected. The appellant had imported components and parts of the engine during the impugned period 20.09.2000 to 29.12.2001. They paid the differential customs duty “Under Protest” owing to a classification dispute on the imported goods.
They filed a refund claim for a refund of differential custom duty of Rs. 43,46,830/- along with Bills of Entry, TR-6 Challan, C. A Certificate and other relevant documents in original. The Appellants were informed that as their refund claim of Rs.3,00,78,856/- for the earlier period was in dispute, this refund claim would be kept in abeyance till the earlier claim is finally disposed of.
The Appellant also enclosed the copy of the refund application filed by them on 23.08.2004 for Rs. 43,46,830/- along with copies of the Bill of Entry and copies of TR-6 Challans, Cenvat account etc. The refund of Rs. 43,46,830/- sought vide letter dated 14.07.2020 was rejected.
Shri Ankur Upadhyay, counsel for the appellant submitted that the Commissioner (Appeals) has erred in rejecting the appeal because Bills of Entry were provisionally assessed.
A Coram comprising Ms Hemambika R Priya, Member(Technical) set aside the impugned order, and remand the matter to the original authority to examine the refund claim in the light of the fact that the claim with all the relevant documents in original had been filed with the department on 23.08.2004 by the appellant.
Further held that “Mere observation that the payments cannot be verified, cannot be a ground to deny the claim.”
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