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Dated: 02.01.2024
Lava International Limited- Cause of action for claiming refund u/s 27 would arise only after the amendment done u/s 149 of Indian Customs Act, 1962
In the Customs appeal no. 50262 of 2021 between The Principal Commissioner of Customs (Imports)-Appellant Vs M/s Lava International Limited -Respondent, the CESTAT New Delhi bench ruled in favour of M/s Lava International Limited-Respondents and allowed the Refund orders issued by the Commissioner (Appeals) which was challenged by the revenue.
The Commissioner (Appeals) held that if section 149 of the Customs Act relating to amendment in the Bills of Entry is made applicable, the cause of action for claiming a refund would arise only after the amendment is made and so the limitation for claiming a refund would start from that date.
In coming to this conclusion, the Commissioner (Appeals) placed reliance upon the decision of the Bombay High Court in Keshari Steels v. Commissioner of Customs, Bombay 2000 (115) E.L.T. 320 (Bom.), wherein what was examined was whether the rejection of the refund claim on the ground of limitation contemplated under section 27 of the Customs Act was justified.
It was held by the Bombay High Court that the refund was within time from the date the rectification was carried out and limitation was not to be counted from the date of assessment. This decision has been affirmed by the Supreme Court in 2000 (121) E.L.T. A139 (S.C.).
The Commissioner (Appeals) as also relied on the decision of the Tribunal in Commissioner of Customs (Import) vs Indian Farmers Fertiliser Co-Op. Ltd. 2008 (230) E.L.T. 667 (Tri.-Mumbai), which decision relied upon the decision of the Bombay High Court in Keshari Steels.
Download the CESTAT Order below:
Lava International Refund order-CESTAT New Delhi Order
Source: CESTAT, New Delhi
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