M/s. Zenith Importers received an assessment order from the Customs Officer on May 15, 2025, for a consignment of imported goods, determining a…

CA Final · Indirect Tax Laws · MTP · September 2025
M/s. Zenith Importers received an assessment order from the Customs Officer on May 15, 2025, for a consignment of imported goods, determining a customs duty liability of 50,000. Zenith Importers believed the assessment was incorrect and paid the duty under protest on June 1, 2025. On December 10, 2025, they filed a refund claim for the entire - 50,000, arguing that the goods were incorrectly classified, leading to an overpayment of duty. No appeal against the assessment order was filed. Based on the provisions of the Customs Act, 1962, which of the following statements is most likely correct regarding Zenith Importers' refund claim?
(A) The refund claim is valid because it was filed within one year from the date of payment of duty, and payment under protest preserves the right to claim a refund.
(B) The refund claim should be processed by the Customs Officer, who can review the original assessment order to determine if the classification was indeed incorrect.
(C) The refund claim is liable to be rejected because it attempts to challenge an order of assessment without filing a proper appeal within the prescribed timelines.
(D) Zenith Importers can convert their refund claim into an appeal, provided they pay the differential appeal fees within 30 days of the refund claim being filed.

Suggested Answer and Working Notes:

Correct Answer: Option (C)

The refund claim is liable to be rejected because it attempts to challenge an order of assessment without filing a proper appeal within the prescribed timelines.

Topics: Customs: Valuation under the Customs Act, 1962

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