2026-VIL-1404-CESTAT-HYD-CU
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CUSTOMS CESTAT Cases

Customs - Refund of interest collected on account of system-related technical glitches - Scope of Section 27 of Customs Act, 1962 - Payment of customs duty within prescribed period through the newly introduced Electronic Cash Ledger system. Due to technical glitches in the portal the amounts were debited from the bank but not immediately reflected in the E-Cash Ledger, resulting in automatic computation of interest under Section 47(2) by the system when challans were generated after the due date - Appellant paid such interest and subsequently sought refund claiming that the interest was not legally payable due to system-related difficulties and that waiver orders issued by the Board covered such cases - Whether refund claim filed on 20.06.2024 for interest paid on 18.04.2023 and 22.04.2023 can be entertained beyond the period of one year prescribed under Section 27 of Customs Act - HELD - Section 27 provides that any person claiming refund of any duty or interest paid may make an application before expiry of one year from the date of payment of such duty or interest. The limitation does not apply where the duty or interest has been paid under a written protest - In the present case there was no material to establish that the interest was paid under written protest. The statutory period of one year expired on 18.04.2024 and 22.04.2024 respectively from the dates of payment, and the refund claim was admittedly filed on 20.06.2024, which was after expiry of the statutory period - The present proceeding is a refund claim filed before the statutory authority and not a writ petition invoking Constitutional Jurisdiction. The Tribunal being a creature of statute is bound by conditions and limitations prescribed under Section 27. The Administrative waiver orders themselves prescribed conditions for availing waiver including payment within the stipulated period and such orders cannot dispense with the limitation enacted by Parliament. The appellant's late knowledge of operational guidelines cannot confer jurisdiction upon the authority to condone the delay as Section 27 makes no provision for extension of the period on ground of sufficient cause or hardship. The question whether interest was otherwise leviable has relevance to substantive entitlement but before merits can be examined the claim must be maintainable under Section 27 - The refund claim is barred by limitation and cannot be entertained - The impugned order is upheld and the appeal is dismissed
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