Case Law Details
Commissioner of Customs Vs Suguna Poultry Farm Ltd (CESTAT Chennai)
Introduction: The case of Commissioner of Customs vs Suguna Poultry Farm Ltd before the CESTAT Chennai concerns the appeal filed by the department against the sanction of refund of import duties under section 26A of the Customs Act. Despite the department’s contention, the CESTAT upheld the refund claim, directing the appellant to pursue the statutory remedy of drawback.
Detailed Analysis: In the appeal, the department contested the sanction of refund by the original authority, arguing that the refund claim filed under section 26A was erroneous and that the respondent should only be eligible for drawback under section 74 of the Customs Act. However, the respondent maintained that they were entitled to the refund as per section 26A, as the goods had been re-exported.
Upon examination of the facts and submissions, the CESTAT noted that the department did not dispute the respondent’s eligibility for drawback. The original authority had conducted due verification and found the respondent eligible for refund under section 26A. The Commissioner (Appeals) had directed the respondent to prefer a drawback claim, acknowledging their entitlement to it. Given these findings, the CESTAT found no merit in the department’s appeal.
Additionally, considering that the amount involved was less than Rs. 50 lakhs and there were no legal issues or recurring issues involved, the appeal fell within the litigation policy and was liable to be dismissed.
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