CESTAT allows refund of anti dumping duty wrongly paid

Posco India Processing Center Private Limited Vs C.C.-Kandla (CESTAT Ahmedabad) 

Introduction: In a recent case before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) Ahmedabad, Posco India Processing Center Private Limited (the Assessee) found itself in a legal battle with the Customs Department (the Department) regarding the refund of anti-dumping duty. The crux of the issue revolved around whether the Department could deny the refund, which had previously been upheld by the Tribunal, on the grounds that it fell outside the scope of the Customs Tariff Act, 1975.

Detailed Analysis: The case stemmed from a previous appeal in which the Assessee had successfully challenged the imposition of anti-dumping duty in Appeal No. A/10443-10447/2014, with the Tribunal’s order dated 12.02.2014 ruling in favor of the Assessee. Consequently, the Assessee sought a refund of the anti-dumping duty that had been erroneously paid.

However, the Department contested the refund claim, arguing that it could not be granted under Section 27 of the Customs Act, 1962, as the Anti-Dumping Act and provisional and final impositions of anti-dumping duty are governed by the Customs Tariff Act, 1975. According to the Department, only refunds in enumerated cases under Section 9A(8) of the Customs Tariff Act, 1975, related to anti-dumping duty, could be granted.

The Assessee’s legal counsel referred to Section 9A and Section 9AA, Sub-Clause 8, of the Customs Tariff Act, 1975, which were introduced in 1995. These sections highlighted that the provisions of the Customs Act, 1962, including those related to the determination of duty rates, assessment, refunds, interest, appeals, offenses, and penalties, were applicable to the duty chargeable under Section 9A of the Customs Tariff Act. In essence, Section 9A(8) allowed refunds as per the provisions of the Customs Act, 1962, in cases other than those specifically enumerated in Section 9AA.

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