Double duty paid on imported consignment by e-payment as well as manually - excess duty paid cannot be treated as ‘duty' so as to apply bar of limitation for granting refund
THE appellant imported a consignment of pigments on 21/02/2009 & 24/02/2009 and paid duty, both manually and by e-payment. On realization that the duty has been paid twice they filed a refund claim on 29.08.2009. The said refund claim was rejected on the ground that the same has been filed beyond the period of six months.
As the lower appellate authority rejected their appeal, the paint company is before the CESTAT.
The Bench observed -
"5. It is an admitted fact that the duty payable by the appellant has been paid. The excess duty paid was not required to be paid by the appellant. Therefore the same cannot be treated as duty. As held by this tribunal in the case of Shankar Ramchandra Auctioneers - wherein it was held that the excess amount paid erroneously as duty which was not required to pay, there is no bar to return of such amounts. Therefore, the provisions of Section 11B of Central Excise Act, 1944 are not applicable. Relying on the said decision, I hold that the provisions of Section 11B ibid are not applicable to the facts of this case. Therefore not filing the refund claim in time cannot be the reason for denying the claim as bar of limitation is not applicable to this case."
The order was set aside and the appeal was allowed with consequential relief.