Where the duty is mistakenly paid in excess, the Assessee is entitled to refund – No need to challenge the assessment of the Bill of Entry
Cipla Ltd.(the Appellant)imported Fermoterol Fumarate and filed a Bill of Entry dated March 31, 2010 for home consumption. The Appellant paid excess CVD at 10% instead of effective rate of 4% in terms of unconditional exemption Notification No. 4/2006-CE dated March 1, 2006 (the Notification) and therefore filed a refund claim Rs. 1,33,779/- towards the excess paid duty.
The Assistant Commissioner of Customs relying on the ratio of the judgement in the case of CCE Vs. Flock India [2000 (120) ELT 285 (SC] and Priya Blue Industries Ltd. [2004 (192) ELT 145 (SC)] rejected the refund claims on the ground that the Appellant has not challenged the assessment of Bill of entry. On appeal being filed,the Ld. Commissioner (Appeals) upheld the order of the Assistant Commissioner. Being aggrieved, the Appellant preferred an appeal before the Hon’ble CESTAT, Mumbai.
The Hon’ble CESTAT, Mumbai relying on the Aman Medical products Ltd. Vs. CC, [2009-TIOL-566-HC-DEL-CUS] (“Aman Medical Case”) held as under:
Therefore, the Hon’ble Tribunal allowed the refund of excess paid CVD to the Appellant with an instruction that the sanctioning Authority must verify the aspect of unjust enrichment before sanctioning the refund.