An importer is not acceptable to the duty imposed by Customs Dept. and he wants to pay duty under protest.What should be the precaution he should take, to get the refund in future ?

Hon'ble Supreme Court in the case of ITC LIMITED VERSUS COMMISSIONER OF CENTRAL EXCISE, KOLKATA -IV on 18.09.2019 held that assessed Bill of Entry is appealable and no separate speaking order is required. Hence If importer wants to apply for refund of customs duty u/s 27, he should appeal against assessed bill of Entry within one year. This ruling is NOT applicable for duty paid under protest. Because the duty paid under protest itself shows Importer's disagreement to the duty imposed and NO NEED TO APPEAL separately.

Whenever an assessee pays duty under protest, it indicates a challenge by him on the demand of duty made by the department. Therefore it is for the department to pass appropriate assessment order considering the protest made by the assessee. If duty is payable under protest, Importer should make sure that his intention  is properly conveyed to the Department by official letter and it has to be recorded in the Bill of Entry by proper officer.

M/S. HDFC BANK LTD. VERSUS PRINCIPAL COMMISSIONER OF GST & CENTRAL EXCISE

31.01.2020

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