ORKAY SILK MILLS LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) THE petitioners are manufacturers of Polyester Yarn from imported item described as MEG Alcohol. The additional levy was charged by Customs between October, 1985 to February, 1986. They paid the duty. Subsequently, they realised that recovery or levy of the duty was wrong. Therefore, by application dated 26-2-1997 (sic), they asked for refund. Since the Department has refused to refund, the petitioners have made the instant Petition, claiming writ of mandamus against the department for payment of the amount.

(2.) IN view of the decision of the Supreme Court reported in 1997 (89) E. L. T. 247 (S. C.) as per Section 27, application claiming refund as such, should be presented within a period of six months as envisaged. In the present case, the claim is barred by limitation.

(3.) THE learned Counsel for Petitioner vehemently urged before us, that since the levying of duty itself was without any authority of tariff, Section 27 as such has no application. In the submission of learned Counsel normal period of limitation for recovery as described is 3 years. The submission is that the application of refund presented on 22-2-1987 (sic) was within the period of limitation of 3 years from the date of payment of duty and as such, it is not barred, in view of the period of limitation.