CESTAT Directs for Reassessment to verify Refund Claim of Excess CVD as Gold Jewellery were Mistakenly Misclassified [Read Order]

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai Bench, directed reassessment to verify a refund claim of excess Countervailing duty (CVD) because of mistakenly misclassified gold jewellery.

The facts of the case are that the appellant, Nathella Sampath Jewellery Pvt. Ltd., noticed that they were eligible for concessional rate in terms of Notification No. 12/2012-CE but not claimed the same at the time of assessment. The appellant requested for reassessment but the same was not considered by the Assistant Commissioner as the original assessment was not set aside in appeal.

After filing a refund claim, the Original Authority observed that the appellant had not filed the duplicate Bill of Entry in original and other relevant certificates and rejected the claim. The Commissioner (Appeals) also rejected it on the ground of time-bar.

The counsel for the appellant challenged the denial of reassessment by the Assistant Commissioner and pleaded that the rejection of the reassessment request without examining the merits of the notification benefit is unsustainable in law. The opposing counsel stated that a refund proceeding is not an appeal and the proper remedy was to file an appeal under Section 128 of the Customs Act, 1962.

CESTAT observed that the Authority should avoid taking a hyper technical view of the matter and act in the mode of a trade facilitator. The bench of M. Ajit Kumar (Technical Member) disposed of the appeal and directed reassessment of the goods to duty, as per law.

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