Refund rejection for lack of challenge to re-assessment not sustainable: CESTAT

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CESTAT quashes adjudication order which rejected refund application in respect of duty paid on imported dialyzers and accessories on ground that re-assessment of bills of entry had not been challenged; Notes assessee’s stand that absent order / decision in writing as required u/s 17 of Customs Act, question of filing appeal to Commissioner (Appeals) u/s 128 did not arise.

Observes that pursuant to amendment to definition of ‘assessment’ in Section 2(34) of Customs Act and to Section 17 w.e.f. April 8, 2011, decision rendered by Apex Court in Priya Blue Industries, as relied on by the Revenue, is distinguishable; On other hand, refers to judgment of Delhi HC in Micromax Informatics Ltd. wherein it was reiterated u/s 27, it was not open to an authority to refuse to consider the application for refund only because no appeal had been filed against assessment order, if there was one; Notes that Madras HC delivered similar ratio in case of same assessee while setting aside order which rejected refund on ground that there was no order modifying / reviewing rate of duty determined via self-assessment mode.

Citation: [TS-128-CESTAT-2018-CUST]

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