Standard Consultants Limited Vs Pr. Commissioner of Customs (CESTAT Hyderabad)
M/s Standard Consultants Ltd (Appellant) filed appeals against Orders-in-Original dated 1st November 2023 (Appeal Nos. C/30169/2024 and C/30170/2024), whereby the Commissioner confirmed recovery of duty and interest on amounts erroneously refunded to the appellant. The dispute arose from the appellant importing kits for converting motor spirit or diesel-driven vehicles to CNG or LPG. The appellant initially paid both Basic Customs Duty (BCD) and Countervailing Duty (CVD) and subsequently claimed a refund of the CVD, asserting that Notification No. 21/2002-Cus dated 1st March 2002, specifically column 5, indicated a “Nil” rate for CVD. The appellant relied on prior orders of the CESTAT Bangalore (2008) and the Tribunal (2015 and 2016) to justify the refund claims.
The adjudicating authority rejected the refund claims, upholding the decision on both merit and limitation grounds. The department sanctioned the refunds but simultaneously issued Show Cause Notices (SCNs) for recovery, leading to appeals before the Commissioner (Appeals), which upheld the recovery. The matter eventually reached the Hon’ble Supreme Court in CCCE & ST, Hyderabad vs. Standard Consultants Ltd [2022 (381) ELT 582 (SC)], which held that such refund claims were not maintainable. Consequently, SCNs were issued for recovery of erroneously refunded amounts of Rs. 60,69,585, Rs. 37,68,244, and Rs. 80,98,010, along with interest, which were confirmed in accordance with the Supreme Court’s ruling.
