CESTAT Mumbai Bench Allows Refund on Reassessed Bills of Entry, Citing Compliance with Customs Act Provisions
In a significant decision, the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) Mumbai Bench has ruled in favour of Drive India Enterprises Solutions Limited, allowing the company's appeal against the rejection of a refund claim by the Commissioner of Customs (Appeals). This judgment, delivered by Mr. M.M. Parthiban, Member (Technical), underscores the conditions under which refunds can be claimed under the Customs Act, 1962, specifically focusing on the reassessment and amendment of Bills of Entry.
The case revolves around the importation of mobile handsets by Drive India Enterprises during early 2015, where the company initially self-assessed and paid customs duties at higher rates, based on a circular by the Central Board of Excise & Customs. However, a subsequent judgment by the Supreme Court clarified that they were eligible for a concessional rate of 1% under a specific notification, prompting Drive India to seek a reassessment of their Bills of Entry and apply for a refund of the excess duty paid.
The Assistant Commissioner of Customs initially granted the refund, but this decision was overturned by the Commissioner of Customs (Appeals), prompting Drive India to appeal to the CESTAT. The Tribunal, in its judgment dated December 19, 2025, meticulously examined the relevant statutory provisions, including Sections 17, 27, 149, and 154 of the Customs Act, 1962. It concluded that the reassessment and amendments made to the Bills of Entry satisfied the legal requirements for claiming a refund.
The Tribunal highlighted that the Commissioner (Appeals) had erred in not recognizing the reassessment under the relevant provisions of the Customs Act, which should have enabled the refund process. The Tribunal also noted that the appellant had filed the refund claim within the stipulated time and had provided adequate proof against unjust enrichment, a crucial criterion under Section 27.
This ruling affirms the appellant's right to a refund, emphasizing that the limitation period for refund claims begins from the date of amendment or reassessment, not the original assessment date. The judgment aligns with previous legal precedents that support the reassessment process as a valid route for pursuing refund claims.
The decision is likely to impact similar cases where importers seek refunds based on reassessed or amended Bills of Entry, reinforcing the legal framework for fair assessment and refund under the Customs Act.
Bottom Line:
Customs Law - Refund of customs duty can be claimed if reassessment or amendment of Bills of Entry under Section 149 or Section 154 of the Customs Act, 1962 has been made, fulfilling the requirement of Section 27 for refund claims.
Statutory provision(s): Customs Act, 1962 Sections 17, 27, 149, 154
