The Bangalore bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) while allowing the refund claim of Nokia held that customs duty payment date is excluded in the limitation calculation of 1 year.
The bench of Dr. D.M. Misra (Judicial Member) and R Bhagya Devi (Technical Member) has observed that under Section 27 of the Customs Act, 1962, the refund claim is required to be filed within the period before the expiry of one year from the date of such duty payment. The date of payment of duty is to be excluded from computing the period of one year. Thus, the refund claims are not barred by limitation.
The appellant/assessee, Nokia is engaged in the business of import of mobile phones falling under CTH 85171290 of the Customs Tariff Act, 1975.
The appellant had paid additional duty of customs (CVD), however, without availing concessional rate of duty under Notification No.12/2012-CE dated 17.03.2012 as they had not satisfied the condition No.16 prescribed under the said notification.
Later, the Supreme Court in the case of SRF Limited Vs. CC decided the issue in favour of the assessee holding that they would be eligible to the benefit of Notification No.12/2012-CE dated 17.03.2012.
Consequently, the appellant had filed three refund claims for the period October 2014, January 2015 to February 2015 and May 2015 to June 2015.
On adjudication, the refund claims were rejected by the adjudicating authority.
The assessee preferred appeals before the Commissioner (Appeals) who though agreed that the refund claims are in order but rejected the same on the ground of unjust enrichment.
The assessee contended that the appellant had paid the customs duty on 07.10.2014 whereas the refund claims were filed on 07.10.2015. It is his contention that in view of the Section 12 of the Limitation Act, 1963, computing the period of limitation, the day from which the application of refund required to be filed shall be excluded.
The issue raised was whether a refund claim against Bills of Entry involving a total amount of Rs.12,00,588 in appeal is hit by limitation.
The CESTAT while allowing the appeal of Nokia held that in view of the Section 12 of the Limitation Act, 1963 read with Section 9 of the General Clauses Act, 1897, the day from which such period is to be reckoned ought to be excluded.
Case Details
Case Title: M/s. Nokia India Sales Pvt. Ltd. Versus Commissioner of Customs, Airport & Air Cargo Commissionerate
Case No.: Customs Appeal No. 20336 of 2018
Date: 08.05.2025
Counsel For Appellant: Kamal Sawhey
Counsel For Respondent: K.A. Jathin
