Principal Commissioner of Customs (ACC Imports) Vs Nokia India Sales Pvt. Ltd. (Delhi High Court)
Delhi High Court recently ruled in favor of Nokia India Sales Pvt. Ltd., affirming that an Adjudicating Authority cannot decline a refund of excess customs duty if a Chartered Accountant’s certificate is provided, attesting that the duty’s incidence was not passed on to consumers. The decision, stemming from appeals filed by the Principal Commissioner of Customs (ACC Imports), reinforces the weight of such certifications in refund claims under the Customs Act, 1962.
The case, Principal Commissioner of Customs (ACC Imports) Vs Nokia India Sales Pvt. Ltd., involved two appeals challenging an order from the Customs, Excise and Service Tax Appellate Tribunal (CESTAT). The dispute centered on Nokia India Sales Pvt. Ltd.’s claim for a refund of additional customs duty paid on imported mobile phones during 2014-2015.
Background of the Case
Nokia India Sales Pvt. Ltd. had imported mobile phones and paid additional customs duty at a rate of 6% until February 2015. Subsequently, the company sought a refund of ₹2,33,05,108 and ₹3,43,88,087, citing an exemption under Notification No. 12/2012-CE, which was later amended by Notification No. 4/2014-CE and Notification No. 12/2015-CE. Specifically, Notification No. 12/2015-CE granted excise duty exemptions to mobile handsets, including cellular phones, subject to Condition No. 16, which stipulated that “no credit under rule 3 or rule 13 of the CENVAT Credit Rules, 2004 has been taken in respect of the inputs or capital goods used in the manufacture of these goods.”
