Commissioner of Customs Vs Vibhuthigadda Mines Pvt Ltd. (CESTAT Hyderabad)
In this case before the Customs Excise and Service Tax Appellate Tribunal Hyderabad, the Revenue challenged an order granting refund of excess export duty paid by the respondent on export of iron ore fines. Initially, the respondent declared the FOB value and paid export duty, but the Department enhanced the value based on contemporaneous exports, leading to payment of additional duty under protest. The respondent later filed a refund claim relying on a CBEC Circular clarifying that FOB value should be treated as cum-duty price.
The refund claim was initially rejected by the adjudicating authority on the ground that the assessment order was not challenged and that the circular applied only to pending assessments. However, the Commissioner (Appeals) allowed the refund, and this decision was upheld by the Tribunal. The Department’s further appeal to the Supreme Court was also dismissed, thereby affirming the refund entitlement.
Subsequently, the Department issued a show cause notice and undertook reassessment, ultimately acknowledging that excess duty had been paid and granting refund. Interest was also awarded later on appeal. The respondent contended that the Department had accepted and implemented the earlier orders, and therefore the issue had attained finality.
