The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Delhi Bench, has dismissed an appeal seeking a refund of Rs. 2,22,702 on the grounds that that refund proceedings are in the nature of execution proceedings and refund can only be sanctioned if duty was paid in excess of the assessed amount. 

The bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) has observed that since the assessment was not challenged and attained finality no refund was sanctioned to the appellant by the Deputy Commissioner and this decision was upheld by the Commissioner (Appeals) in the impugned order.

The company had filed a Bill of Entry on June 11, 2018, which was provisionally assessed and later finalized on July 1, 2013. However, the company did not challenge this final assessment at the time. Nearly four years later, on July 26, 2017, the company applied for a refund, citing the Supreme Court’s judgment in SRF Ltd. vs Commissioner of Customs, Chennai, arguing it was entitled to exemption under Notification No. 30/2004-CE dated July 9, 2004.

Both the Deputy Commissioner and the Commissioner (Appeals) had rejected the refund claim on the grounds that the assessment had already attained finality and had not been challenged through a proper appeal.

The Tribunal reiterated that refund proceedings cannot alter final assessments and are only applicable if excess duty has been paid as per a finalized assessment.

The Tribunal concluded that the refund could not be entertained in the absence of an appeal against the final assessment and dismissed the appeal accordingly.

Case Details

Case Title: M/s Diamond Mink Blankets Ltd.  Versus The Commissioner of Customs & Central Excise

Case No.: Customs Appeal No. 50805 Of 2021

Date:  17.07.2025

Counsel For  Appellant: Shravan Kochar, Advocate

Counsel For Respondent: Rajesh Singh, Authorized Representative

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