Sandhya Marines Limited Vs Commissioner of Customs (CESTAT Chennai)
CESTAT Chennai held that cess levied on export of Shrimp and Prawns was unlawful and since the element of Agricultural Produce Cess paid on the export of Prawns and Shrimps was not passed, refund of the same is eligible.
Facts- Issue involved herein is that the Appellants engaged in the business of exporting marine products were exporting Prawns/Shrimps during the period from 1998-1999 to 2004-2005 and as the department contested that Shrimps/ Prawns were fish on which cess was payable, the bills were assessed and the Appellants to have remitted Cess of 5% which is leviable for export of fish under the provisions of Agricultural Produce Cess Act, 1940 during the period between 1998-1999 to 2004-2005.
The exporters of Prawn / Shrimp products filed a batch of writ petitions before the Hon’ble High Court of Andhra Pradesh which allowed the appeals by holding that cess could not be levied since Prawns/ Shrimps were different from fish. On appeal by the Department, the Hon’ble Supreme Court dismissed the appeals filed by the Department by confirming that cess could not be levied on the export of prawns / shrimps.
Thereafter, the Appellants filed refund claims before the adjudicating authority which was allowed. Thereafter, the Department preferred an appeal before the Commissioner (Appeals), Chennai who set aside the impugned orders and rejected the refund claims on the grounds of unjust enrichment and time bar and ordered for recovery of refunds paid to the exporters. Aggrieved, the Appellants have filed the present appeals before this forum.
