Refund Not Maintainable Without Challenging Self-Assessment { MAYUR UNIQUOTERS LTD. Versus COMMR. (APPEALS), C. EX. & CGST, JAIPUR 2024 (89) G.S.T.L. 269 (Tri. – Del.) / (2024) 21 Centax 395 (Tri. – Del.)}
Facts
Appellant imported goods under Advance Authorization and initially cleared the goods through self-assessment by claiming exemption from IGST. Subsequently, it realized that the exemption was not available because the prescribed conditions had not been fulfilled. Appellant voluntarily paid the IGST along with interest under Section 28(1)(b) of the Customs Act and thereafter filed a refund claim seeking refund of the interest paid. The refund claim was rejected by the department and the rejection was upheld in appeal
Issue
Whether the importer was entitled to a refund of the interest paid on delayed payment of IGST on imported goods, and whether such refund could be claimed without challenging or modifying the original self-assessment. Further, whether IGST on imports is to be treated as customs duty/additional customs duty
Held
The Tribunal held that no refund can be granted without first challenging or modifying the assessment, including a self-assessment. Since the appellant had voluntarily paid IGST and interest and had not challenged the assessment, the refund claim was not maintainable. The Tribunal further held that IGST on imports is not customs duty or additional customs duty; it is a levy under the GST regime, and interest is payable on delayed payment of such IGST. Accordingly, the refund claim for interest was rightly rejected and the appeals were dismissed.
