Aurex Global Industries Ltd. imported certain machinery, and the customs authorities passed an assessment order determining the duty payable. Aurex…

No, the refund claim filed by Aurex Global Industries Ltd. is not maintainable in law. In the case of Priya Blue Industries Limited v. CCus. (Preventive) 2004 (172) ELT 145 (SC), Supreme Court ruled that unless an assessment order has been reviewed and/or modified in an appeal, that assessment order stands. 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 review the assessment order. Thus, refund claims based on challenge to an order of assessment are liable to be rejected. In view of the above ruling of the Supreme Court, refund claims based on challenge to an order of assessment are liable to be rejected. Appeal should be filed and not a refund claim when adjudication order has been issued or even when self-assessment is made. An adjudication order should be appealed against, if assessee is aggrieved by adjudication order. The order cannot be challenged by filing refund application.