Sg Herbs vs. Assistant Commissioner, Refund, Office Of Commissioner Of Customs (Import)

Facts

The Petitioner, SG HERBS, filed a writ petition seeking a direction to the Respondent, Assistant Commissioner, Refund, to refund excess customs duty amounting to Rs. 7,70,746/-. This duty was deposited for 18 MT of Bedellium Resin, which was initially detained. The Assessing Authority reassessed the duty, but this order was reversed by the Appellate Authority on July 25, 2022, entitling the Petitioner to a refund. The Petitioner applied for the refund, and the Respondent indicated that remaining formalities were completed, with refund contingent on the Petitioner furnishing a declaration that IGST credit for this amount was not claimed.

Held

The Court disposed of the writ petition based on the submissions made by both parties. The Petitioner agreed to submit a declaration within two weeks, confirming that they have not claimed credit for the excess customs duty in IGST. The Respondent assured that upon receipt of this declaration, the refund would be processed within one week thereafter. The Court found that no further orders were required to be passed, and the Respondent was bound to refund the amount once the necessary formalities, including the submission of the declaration by the Petitioner, were completed. The Court noted that the presence of the Respondent's counsel was inadvertently not marked on a previous date and deemed it marked.

Key Issues

1. Whether the Petitioner is entitled to a refund of the excess customs duty deposited, considering the reversal of the Assessing Authority's order by the Appellate Authority? (Question of law). The Petitioner argued that the Appellate Authority's order, which reversed the Assessing Authority's reassessment, clearly entitles them to the refund of the excess customs duty deposited. The Respondent did not contest the entitlement to the refund but stated that certain procedural formalities needed to be completed by the Petitioner before the refund could be processed. The Respondent's counsel stated that upon receipt of a declaration from the Petitioner confirming no IGST credit was claimed, the refund would be processed.