The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), held that Refund claim is not hit by limitation when filed within one year from relevant date under Section 27 of Customs Act.
The appellant, Variety Lumbers Pvt Limited had paid 4% (Special Additional Duty) SAD on importation of Timber Round Logs. Later the appellant filed refund claim for 4% SAD on the basis of exemption allowed under Notification No. 102/2007-Cus dated 14.09.2007. The said notification stipulates that an importer shall file a claim of Refund of SAD with the customs officer before the expiry of one year from the date of payment of SAD.
The allegation was that the refund claim was filed by the Appellant after the expiry of one year and hence the claim appeared to be hit by limitation. Show cause notice was issued to the Appellant proposing rejection of the refund claim. In adjudication, the Assistant Commissioner rejected the refund claim on the ground that the claim was filed beyond the period of limitation.
Being aggrieved with the said original order, the Appellant filed appeal before the Commissioner (Appeals), who upheld the order. Being aggrieved the Appellant filed the present Appeal.
The Counsel for the appellant submitted that Section 27(1B) (b) of the Customs Act provides that the period of limitation of one year will be computed from the date of judgment /decree/ order or direction in a case where the duty become refundable as consequence of Judgment/ decree/ and order. In the present case, the Supreme Court decided the issue finally and the Appellant preferred refund claim on 17.01.2019, therefore, it is within the period of limitation i.e. one year as prescribed under Section 27 of the Customs Act.
A Division Bench consisting of Ramesh Nair, Judicial Member and Raju, Technical Member held that “Accordingly, in this case the relevant date shall be the date of the Apex court decision i.e. 24.04.2018. The appellant admittedly filed the refund claim within one year from the date of the Supreme Court judgment. Hence refund claim was filed well within the stipulated time period of one year from the relevant date in terms of Section 27 of the Customs Act, 1962.”
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to TaxscanAdFree. Follow us on Telegram for quick updates.
