The Gujarat High Court (HC) held that the refund on anti-dump duty paid for the intervening period between the Provisional Anti-Dumping Duty Notification and the regular final Anti-Dumping Duty Notification is allowable.
Perfect Importers and Distributors (India) Pvt. ltd., the petitioners are engaged in trading of imported goods such as Cast Alloy Aluminum Wheels or Alloy Road Wheels used for Motor Vehicles.
The petitioners filed three Bills of Entry Nos. (1) 8195940 dated 4.2.2015, (2) 9212058 dated 12.5.2015 and (3) 9308623 dated 21.5.2015 for clearance of their imported goods. A Provisional Anti Dumping Duty at a specified rate was imposed under the Provisional Anti Dumping Duty Notification No.15/2014 dated 11.4.2014 which was valid for a period of six months as per the provisions of the law and the validity of the said notification expired on 11.10.2014.
Another Notification No.21/2015 dated 22.5.2015 was issued imposing Anti Dumping Duty at the same rate as specified in the Provisional Anti Dumping Duty Notification for a period of five years. The petitioner was directed by the respondent authorities to pay Anti Dumping Duty of Rs.23,62,796.00 as per Notification No.21/2015 dated 22.5.2015 on the imported goods and accordingly, the petitioner paid such Anti-Dumping Duty so as to take delivery of the goods.
The petitioners requested the respondent authorities to refund the aforesaid amount as per the decision of the case of CIT, Bangalore v. G.M. Exports where it was held that if there is a gap between the Provisional Anti Dumping Duty Notification and the regular final Anti-Dumping Duty Notification in the intervening period, no Anti Dumping Duty is payable. The respondent authorities passed the order-in-original dated 30.08.2016 rejecting the refund claim of the petitioners.
On appeal, the Commissioner (Appeals), Customs, rejected the refund claim of the petitioners in the remand proceedings on the ground that the claim of the petitioners is not maintainable as the petitioners did not challenge the assessment order under three Bills of Entry and in absence of challenge to the assessment orders by which Anti Dumping Duty was levied.
Justice N V Anjaria and Justice Bhargav D Karia observed that as the respondent authority has not carried out the directions issued by the appellate authority and has tried to justify the order which is set aside by filing the affidavit in reply on merits in this proceeding and directed the respondent to issue a refund to the petitioners given the decision in case of G.M. Exports(supra).
While allowing the appeal, the respondent authorities are directed to refund the amount of Rs.23,62,796.00 with interest at the rate of 6% per annum from the date of levy till final payment.
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