Mr. Charanjit, an importer, filed a claim for refund of custom duty paid under protest which was assessed on the value of imported machinery. The…

The action of the Department of rejecting the refund claim is correct. The facts of the given case are similar to a Supreme Court judgment 5 wherein the Court held that unless an assessment order has been reviewed and/or modified in an appeal, that assessment order stands, and the duty is payable only as per that assessment order. A refund claim is not an appeal proceeding. Further, the officer considering the refund claim, cannot not review the assessment order. Thus, refund claims based on challenge to an order of assessment are liable to be rejected. Mr. Charanjit has alternative option of: (i) filing appeal against the assessment order with which he is aggrieved. or (ii) request the competent officer to review the assessment order. 5 Priya Blue Industries Limited v. Commissioner of Customs 2004 (172) ELT 145 (SC)