Commissioner of Customs Vs GMMCO Ltd. (Madras High Court)
The Madras High Court considered an appeal filed by the Revenue challenging the order of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), which had upheld the refund of Extra Duty Deposit (EDD) collected from M/s GMMCO Ltd. in respect of imports of engines and engine parts from M/s Caterpillar Far East Ltd.
The Tribunal had recorded that the imports were initially assessed with loading of EDD pending final determination of whether the declared value was depressed because of the relationship between the supplier and the importer. By Final Order Nos. 667 and 668/2000 dated 25.08.2000, the Tribunal had held that the declared value was acceptable for assessment. The Department’s appeal against that order had subsequently been dismissed by the Supreme Court. Despite this, EDD continued to be collected for imports made between 25.08.2000 and July 2001.
Following the Supreme Court’s order, the importer sought refund of the EDD collected during the said period. The refund was not granted on the ground that no proper claim had been filed in the prescribed manner. The Commissioner (Appeals), however, held that once the declared value had been accepted by the CESTAT, the EDD collected thereafter had to be refunded with interest. The Commissioner (Appeals) further held that the amount had been collected without legal sanction and that its refund was not governed by Section 27 of the Customs Act.
