China Steel Corporation India Pvt Ltd Vs C.C. (CESTAT Ahmedabad)
Refund on Extra Duty Deposit should be automatic under Customs Act
The CESTAT, Ahmedabad in the matter of M/s China Steel Corporation India Pvt Ltd v. C.C.-Ahmedabad [Final Order No. A/ 10817 /2022 dated July 26,2022] has held that the assessee would be entitle to automatic refund of Extra Duty Deposit (“the EDD”) without filing of application for refund under Section 27 of the Customs Act, 1962 (“the Customs Act”).
Facts:
M/s China Steel Corporation India Pvt Ltd (“the Appellant”) has engaged in import of Silicon Electrical Steel of Cold Rolled Full Hard (“the Goods”) from a related entity. The issue of valuation was taken up by the Special Valuation Brance (“the SVB”). EDD of 1% is to be provided as a safeguard for revenue and accordingly the Appellant had deposited EDD. The assessment was finally approved and EDD was paid by the Appellant and became refundable to them. The order accepting the declared value was passed on February 04, 2016 and refund claim was filed on January 24 , 2018. The Show Cause Notice (“the SCN”) was issued seeking to reject refund claim on the grounds of limitation. Aggrieved by such rejection, the Appellant filed the present appeal.
Appellant’s Contention:
