EMM EII Wooltex Vs Commissioner of Customs (CESTAT Chandigarh)
Chandigarh: The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chandigarh, has allowed a refund claim for Countervailing Duty (CVD) and Special Additional Duty (ACD) paid by M/s EMM EII Wooltex. The tribunal set aside an order from the Commissioner (Appeals) that had upheld the denial of a portion of the refund, finding the lower authority’s reasoning to be contradictory and based on apprehension rather than concrete evidence of unjust enrichment.
The case dates back to the import of various textile articles by EMM EII Wooltex. Following the filing of a Bill of Entry in May 2017, customs authorities examined the goods and raised concerns that they differed from the declaration. This led to adjudication proceedings, resulting in the imposition of fines and penalties on the importer.
EMM EII Wooltex challenged the penalties and fines before the appellate authority, which, in an order dated October 1, 2019, ruled in favour of the appellant and set aside the imposed fines and penalties.
In the wake of this favourable appellate order, EMM EII Wooltex proceeded to file a refund claim for the duties paid. While a part of the claimed amount was refunded by the original authority, a sum of ₹2,57,625, representing a portion of the CVD and ACD paid, was withheld and the refund claim for this amount was rejected.
