CC Vs. N.G.E.F. LIMITED

JUDGEMENT

(1.) THE issue involved in these appeals is the refund of over Rs. 72,000/ - sanctioned to the respondents - M/s. N.G.E.F. Limited. The goods were cleared between December, 1988 and January, 1989. Refund applications were filed only on 12.11.1991 i.e. well beyond the period prescribed under Section 27 of the Customs Act for filing refund applications. The claim itself was on the ground that the respondents had paid interest at 18% in respect of warehoused goods cleared for home consumption while the correct rate of interest during the period was only 12%. The Assistant Collector held that "interest" came to be covered by refund provisions under Section 27 only after the amendment of that Section with effect from 20.9.1991 and that the claims for refund of interest paid prior to that period were liable to be decided in terms of the Limitation Act which allows a longer period of limitation. The Collector (Appeals) has confirmed the Assistant Collector's order in the impugned order.

(2.) THE Revenue has contended that the Collector's order is illegal and improper inasmuch as the departmental authorities could not have entertained the refund applications except in terms of the statutory provisions of the Customs Act. They have relied on decisions of the Apex Court and other authorities in support of their claim.

(3.) IT is observed that the Supreme Court has held in the case of Miles India Ltd. v. Assistant Collector of Customs reported in 1987 (30) ELT 641 (SC) : 1985 ECR 289 (SC) : ECR C 750 SC : ECR C Cus 1094 SC with regard to granting of refund application that Appellate Tribunal as well as Customs Authorities are bound by statutory period of limitation as contained in Section 27 of the Customs Act 1962. In the case of Collector of Central Excise, Chandigarh v. Doaba Co -operative Sugar Mills , the Apex Court observed as under with regard to jurisdiction of departmental authorities to sanction refund: