Legal principle

Where the department does not dispute the claimant's substantive entitlement to drawback under section 74 and the refund was sanctioned after due verification, an appeal on the mere technicality that refund was claimed under section 26A, involving less than Rs. 50 lakhs with no legal or recurring issue, falls within the Customs litigation policy and must be dismissed.

Court decision

The Tribunal sustained the impugned order of the Commissioner (Appeals) and dismissed the department's appeal, holding it had no merit and fell within the litigation policy as the amount involved was less than Rs. 50 lakhs and no legal or recurring issue was raised.

Facts

M/s Suguna Poultry Farm Ltd imported goods, paid the entire anti-dumping duty and Basic Customs Duty, and then re-exported the goods. It filed a refund claim under section 26A of the Customs Act, 1962 for the import duties paid in consequence of the re-export. The original authority sanctioned the refund after verifying the amounts paid and confirming the goods had not been cleared for home consumption. The department appealed, and the Commissioner (Appeals) rejected the department's appeal while directing the respondent to prefer a drawback claim; the department then carried the matter to the Tribunal.

Key provisions

• Section 26A, Customs Act, 1962 — Refund of import duty in certain cases
• Section 74, Customs Act, 1962 — Drawback allowable on re-export of duty-paid goods