Case Law Details
Ratan Textiles Pvt Ltd Vs Commissioner of Customs (CESTAT Allahabad)
In the case of Ratan Textiles Pvt Ltd vs Commissioner of Customs, the dispute revolves around the applicability of the limitation period for claiming a refund of customs duty paid under protest.
Background: Ratan Textiles Pvt Ltd filed a refund claim for Rs. 1,45,000 in July 2019, seeking a refund of customs duty paid earlier under protest. The duty was paid as a condition for the release of confiscated goods. The original authority rejected their refund claim citing it was beyond the one-year limitation period prescribed under Section 27 of the Customs Act, 1962.
Commissioner (Appeals) Decision: The Commissioner (Appeals) upheld the rejection, stating that Section 27 of the Customs Act mandates that refund applications must be made within one year from the date of duty payment, unless the payment was made under protest. Since Ratan Textiles filed for refund more than 20 months after the Tribunal’s favorable order in November 2017, the limitation period applied. The Commissioner also emphasized that the protest’s conclusion by the Tribunal did not alter the refund deadline under Section 27.
Appellant’s Argument: Ratan Textiles argued that since the duty was paid under protest, the limitation period should not apply. They cited precedents where similar refund claims were allowed even after the expiration of the one-year period, emphasizing that such payments under protest should not be subject to strict timelines.
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