2026-VIL-1720-CESTAT-MUM-CU
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CUSTOMS CESTAT Cases

Customs – Refund of duty paid twice against one Bill of Entry – Section 27 and Section 27A of Customs Act, 1962 – Public Notice No. 62/2012 – Appellant paid Customs duty through a bank, but no challan was generated in the ICEGATE system. Appellant had to pay the duty again for clearance of goods. Appellant filed a refund application for the first payment with a bank certificate and other documents. The refund was rejected, and the Commissioner (Appeals) upheld the rejection as self-attested photocopies of both challans were not submitted – Whether refund of duty paid twice can be rejected for non-production of the challan for the first payment, when the challan was never generated in the ICEGATE system of the Department, and whether interest is payable – HELD – There was no dispute regarding the eligibility of the Appellant to get refund of one of the double payments. It was improbable to ask the Appellant to produce the challan for the first payment when its entire claim was that the challan could not be generated. Rejecting the refund on that ground was improper, since the failure was in the ICEGATE system of the Department, and the Appellant could not be made to suffer for it. Under Public Notice No. 62/2012, the Appellant was required to produce a bank letter, a copy of the cyber receipt and the bank-attested scroll. The verification from the PAO and the challan enquiry on the ICEGATE website were to be done by the proper officer. Production of copies of both challans was not a requirement under the said Public Notice. The Appellant had complied with all requirements, and the bank had declared that the amount debited was not reversed. Such double payment is a deposit with the Government that is refundable under Section 27. Interest under Section 27A applies automatically when the refund is not made within three months – The order of the Commissioner (Appeals) is set aside, the appeal is allowed, and the Respondent is directed to refund the amount with applicable interest within two months of receipt of the order.
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