COMMISSIONER OF CUSTOMS, COCHIN Vs. TATA TETLEY LTD.

JUDGEMENT

(1.) THIS appeal is filed by the revenue against order -in -appeal No. 57/2009, dated 15 -9 -2009 vide which the learned Commissioner (Appeals) has set aside the order -in -original but rejected the refund claim filed by the respondents. The relevant facts that arise for consideration are that the respondent who is a 100% EOU had effected DTA sales of tea bags during the period 1 -3 -2000 to 30 -6 -2000 by short payment of customs duty and without payment of Special Additional Duty (SAD). Revenue was of the view that respondent is required to pay Special Additional Duty (SAD) due to enactment of Finance Act, 2000. By the time the department was aware of such non -duty paid clearances, the statutory time -limit for raising of demands had expired. Hence, the Department by letter dated 6 -9 -2001 informed the respondent herein that there is short levy and requested that the amount of short levied duty be remitted. Respondent vide letter dated 17 -10 -2001 remitted the differential customs duty of Rs. 5,72,734/ - but stated that there was no liability on their part to remit the SAD. In response to such a letter dated 17 -10 -2001, the Assistant Commissioner of Customs vide his letter dated 23 -11 -2001 again directed the assessee to pay the balance amount of Rs. 2,91,995/ - towards short levy of SAD. In response to such a letter the assessee vide their letter dated 4 -10 -2002 remitted the amount of Rs. 2,91,995/ - towards SAD under protest, reserving the right to apply for the refund of the amount in view of their stand on merits. Consequent to such payment, assessee filed refund claim which got rejected and it travelled up to the Tribunal and this Bench vide Final Order No. 326/2006 dated 15 -2 -2006 remanded the matter back by recording as under :

(2.) CONSEQUENT to such remand order, the Original Authority again rejected the refund claim filed by the assessee on the ground, that time -bar demand paid voluntarily need not be refunded. On an appeal, Learned Commissioner (Appeals) set aside the order -in -original and allowed the refund claim. Learned SDR would reiterate the grounds of appeal which are as under :

(3.) LEARNED counsel for the assessee would submit that the direction of the Tribunal was correctly followed by the learned Commissioner (Appeals).