In Customs Appeal No. 51760 of 2023-CESTAT- CESTAT (Delhi) rules assessment or reassessment order not required for refund claim under Customs Act, post-2011 amendment
Member Binu Tamta (Judicial) [02-05-2023]

Read Order: M/s Synergy Steels Ltd v. Commissioner of Customs

Chahat Varma

New Delhi, May 3, 2023: The Principal bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has held that after the amendment in 2011, obtaining an assessment or reassessment order is no longer a requirement for claiming a refund under section 27 of the Customs Act.

M/s Synergy Steels Limited (appellant) had filed an appeal before CESTAT, challenging the rejection of their refund claim by the adjudicating authority, which was upheld by the Commissioner (Appeals) on the ground that it was time-barred. Learned Counsel for the appellant submitted that they had filed the request for reassessment along with the refund of excess duty paid by them, as early as on 23.01.2018 and the subsequent letter dated 29.04.2019 was merely a reminder as the authorities had not processed their refund claim nor had pointed out any deficiency.

The Tribunal observed that section 27 of the Customs Act does not prescribe that obtaining an order of assessment or reassessment is a condition for claiming a refund, particularly after the 2011 amendment which eliminated this requirement.

In the facts of the case, the Tribunal opined that authority was duty bound to refund such amount as was ascertained by virtue of the reassessment. The Tribunal placed reliance on the decision of the Apex court in Union of India vs. ITC Limited [LQ/SC/1993/546] , wherein it has been observed “just as an assessee cannot be permitted to evade payment of rightful tax, the authority which recovers tax without any authority of law cannot be permitted to retain the amount merely because the tax payer was not aware at that time.”