The Madras High Court has nullified the rejection of a refund application filed by SIBCO Overseas Pvt Ltd under Section 27A of the Customs Act, 1962. The court found the issue in the present case to be identical to the ones addressed in a batch of cases led by W.A.No.927 of 2013, which questioned the legality of paragraph 4.3 of Circular No. 6/2008-Customs dated 28.04.2008. This earlier case led to a consequential direction to the authority to consider refund applications in light of Sections 27 and 27A of the Customs Act, 1962.
The court, applying the operative portion of the order from the previous case, set aside the impugned order and remanded the matter to the original authority for fresh consideration. This would involve hearing the parties based on the outcome of a Special Leave Petition filed against a related order of the Bombay High Court in the case of CMS Info Systems Limited v Union of India.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
A copy of the order of Division Bench in W.A.No.927 of 2013 and batch along with C.M.A.No.1342 of 2017 and other C.M.A’s dated 25.04.2022 is produced.
2. That order disposes appeals filed as against orders of learned Single Judge quashing paragraph 4.3 of Circular No. 6/2008-Customs dated 28.04.2008 and a consequential direction to the authority to consider refund applications in light of Section 27 and 27A of the Customs Act, 1962.
3. Both learned counsel concur with the position that the identical issue as above arises in this matter as well. Hence the directions of Division Bench in that case will apply on all fours to the present matter.
4. Paragraph 7 being operative portion is extracted:-
“Such being the present position of law, this Court, in the given facts and circumstances of the case, set aside the orders impugned herein and remands the matter to the original authority for fresh consideration of the applications for refund after providing opportunity of hearing to the parties, based on the outcome of the SLP filed against the order passed by the Bombay High Court in CMS Info System Limited (supra), to be rendered by the Hon’ble Supreme Court.”
5. The same direction as above is taken to be passed in the present case as well. Thus, the impugned order is set aside and the matter remanded to the original authority for fresh consideration after hearing the parties based on the outcome of Special Leave Petition filed against the order of the Bombay High Court in the case of CMS Info Systems Limited v Union of India [2017 (349) ELT 236 (Bom)].
6. Writ petition stands disposed. No costs.