CA Urvashi Porwal
Brief of the case
In the case of Commissioner of Customs (Exports) Vs M/s.Sayonara Exports Pvt. Ltd., it was held by High Court of Madras that the assessee is entitled for automatic refund of the Extra Duty Deposit made pending finalisation of the provision assessment without filing an application for refund under Section 27 of the Customs Act, 1962.
Brief facts of the case
The assessee imported RDB Palmolein (edible grade) and paid extra duty deposit (for short ‘EDD’) of Rs.1,13,004/- for the purpose of provisional assessment of the imported goods, pending survey report. On submission of the report, the Department finalised the provisional assessment on 9.6.00 and forwarded the file to the Refund Section for refund of the EDD. The Assistant Commissioner of Customs (Refund), suo motu, passed an order on 15.9.05 holding that no refund application has been filed as required under Explanation II to Section 27 of the Act and the refund application should have been filed within six months from the date of finalisation of provisional assessment and, therefore, rejected the claim.
The relevant portion of the order is extracted herein below :-
“On perusal of the documents, it is observed that the importer has not filed any refund apposition as required under the explanation II to Section 27 of the Customs Act, 1962 as per which the importer/claimed has to file the refund applications within 6 months from the date of finalisation of the provisional assessment. In the instant case, the assessment was made finally on 9.6.2000, whereas the importer has not filed any refund application, therefore, no refund will accrue will accrue to the importer/claimant. Therefore, I pass the following order in view of above discussion :
ORDER
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