HINDUSTAN INSECTICIDES LTD Vs. ASST COLLECTOR OF CUSTOMS

JUDGEMENT

(1.) The short question that arises for consideration in this original petition is whether the petitioner is entitled to refund of a sum of Rs.44,766.07 wrongly paid as customs duty, on an application filed after expiry of a period of six months from the date of its payment.

(2.) Petitioner imported 'HEXACHLOROCYCLOPENTADIENE' for the manufacture of their product 'ENDOSULPHAN'. The raw material imported is an organic substance. But the customs authorities assessed the goods for the purpose of customs duty under tariff item No.28.01/58(1) as an inorganic chemical compound not elsewhere specified as per the provision contained in the Customs Act, 1962 read with Customs Tariff Act, 1975, petitioner paid the duty as assessed. When a second consignment of the same substance was received by the petitioner, the customs authorities assessed duty under tariff item 29.01/45(1) and collected the dues correctly. On such assessment, the petitioner realised the mistake in paying the excess duty in relation to the earlier consignment. Immediately thereafter i.e. within two weeks from Ext. P2 the second of assessment Ext. P3 application was filed claiming refund of Rs.44,766.07. That application has been rejected on the sole ground that it was filed after the expiry of the statutory period of limitation of six months under S.27(1)(b) of the Customs Act, 1962 (hereinafter referred to as the Act). Hence this Original Petition.

(3.) A detailed counter affidavit has been filed by the Asst. Collector of Customs, Cochin. It is admitted therein that the first consignment was classified as an inorganic chemical under Tariff item 28.01/58(1) and assessed to customs duty at the rate of 70% plus 40% and 10% towards C.V. duty and that the subsequent consignment was classified under tariff head 29.01/45 (1) and was assessed to duty at the rate of 60% plus 40% and 12% towards C. V.duty. In Para.7 of the counter affidavit, it is specifically averred:-