Commissioner of Customs Vs Standard Consultants Ltd. (Supreme Court of India)
Summary: The Supreme Court considered a batch of customs appeals involving two distinct issues: the maintainability of departmental appeals below the monetary threshold prescribed under the National Litigation Policy and the eligibility of assessees to claim customs duty refunds without challenging their self-assessment orders. In the first group of appeals, the tax effect was less than Rs.25 lakhs, which was below the prescribed monetary limit. The learned Additional Solicitor General and senior counsel appearing for the Revenue informed the Court that the Department did not wish to press these appeals in view of the National Litigation Policy notified by the Ministry of Law and Justice. Accordingly, the Supreme Court dismissed those appeals as not pressed, without adjudicating the underlying disputes on merits.
In the remaining appeals, the Supreme Court examined the validity of refund claims filed by assessees who had not challenged their original self-assessment orders. The Customs, Excise and Service Tax Appellate Tribunal, Regional Bench at Hyderabad, had allowed the refund applications despite the underlying self-assessments remaining unchallenged. The Supreme Court relied on its earlier decision in ITC Ltd. Vs Commissioner of Central Excise, Kolkata IV, reported in (2019) 17 SCC 46, which established that a refund claim cannot be maintained without challenging or obtaining modification of the underlying assessment. Applying this principle, the Court allowed Civil Appeal Nos. 3344-3345/2017 and 3346-3348/2017 and set aside the Tribunal’s orders dated 22.06.2016 and 15.12.2015. Civil Appeal Nos. 4732/2009 and 18238-18244/2017 were dismissed. All pending applications were disposed of.
Cases Discussed
- ITC Ltd. Vs Commissioner of Central Excise, Kolkata IV — (2019) 17 SCC 46 (Supreme Court of India).
FULL TEXT OF THE JUDGMENT/ORDER OF SUPREME COURT
Since, the tax effect, in these appeals, is less than Rs.25 lakhs, which is below the threshold monetary limits prescribed in the National Litigation Policy, learned Additional Solicitor General and learned senior counsel appearing for the Revenue -appellant(s) do not wish to press these appeals.
In view of the aforestated Policy, notified by the Ministry of Law and Justice, these appeals are, thus, dismissed as not pressed for.
Pending application(s), if any, shall stand disposed of.
The order(s) of self-assessment was admittedly not assailed by the respondent(s)-assessee(s) and subsequently, only refund application(s) was filed, which has been allowed by the Customs, Excise & Service Tax Appellate Tribunal, Regional Bench at Hyderabad (the ‘Tribunal’) vide impugned order(s). Such claim(s) for refund is not maintainable as held by this Court in ITC Ltd. vs. Commissioner of Central Excise, Kolkata IV reported in 2019(17) SCC 46.
Following the dictum cited above, the instant appeals are allowed and the impugned order(s) passed by the Tribunal dated 22.06.2016 & 15.12.2015 are, accordingly, set aside.
Pending application(s), if any, shall stand disposed of.
The Civil Appeal Nos.4732/2009 & 18238-18244/2017 are dismissed and Civil Appeal Nos.3344-3345/2017 & 3346-3348/2017 are allowed, in terms of the common signed order.
Pending application(s), if any, shall stand disposed of.
