Ratnagiri Gas & Power Pvt. Ltd. Vs Commissioner of Customs (CESTAT Mumbai)
The Customs, Excise & Service Tax Appellate Tribunal (CESTAT) Mumbai has set aside an order by the Commissioner (Appeals), Goa, in a dispute over the refund of customs duty paid by Ratnagiri Gas & Power Pvt. Ltd. (RGPPL) on liquefied natural gas (LNG) imports. The tribunal found that the lower authority failed to properly assess the aspect of unjust enrichment under the Customs Act, 1962, before partially denying RGPPL’s refund claim. The matter has been remanded for a fresh decision.
RGPPL had purchased LNG on a high-seas sale basis from Gas Authority of India Limited (GAIL). However, due to a technical issue at the LNG terminal, only 14% of the consignment could be unloaded, while the remaining cargo was re-exported. Despite this, RGPPL had initially paid customs duty on the entire shipment under provisional assessment. After final assessment, RGPPL sought a refund of ₹3.06 crore, representing the duty paid on the unimported LNG. The original adjudicating authority allowed the refund but credited the amount to the Consumer Welfare Fund (CWF), citing unjust enrichment. On appeal, the Commissioner (Appeals) partially sanctioned the refund but upheld the transfer of the remaining amount to CWF.
