Customs Act, 1962 — Chapter V: Levy of, and Exemption from, Customs Duties
27. Claim for refund of duty
(1) Any person claiming refund of duty or interest paid or borne by him may apply, in the prescribed form, to the Assistant/Deputy Commissioner of Customs, before the expiry of one year from the date of payment. Provisos: the one-year limit does not apply where duty/interest was paid under protest; refunds under ₹100 are not paid. Explanation: for a person other than the importer, “date of payment” means the date of purchase of the goods.
(1A) The application must be accompanied by documentary or other evidence establishing that the amount was collected from or paid by the applicant and its incidence has not been passed on to any other person.
(1B) The one-year limitation is computed: (a) from the date of a special order under section 25(2) exempting the goods; (b) from the date of a judgment/decree/order/direction making duty refundable; (c) from the date of adjustment/re-assessment where duty was paid provisionally under section 18.
(2) If satisfied the whole or part of the duty/interest is refundable, the Assistant/Deputy Commissioner orders accordingly and the amount is credited to the Consumer Welfare Fund — except where relatable to: (a) duty/interest paid by the importer or exporter who has not passed on the incidence; (b) duty/interest on imports by an individual for personal use; (c) duty/interest borne by the buyer without passing it on; (d) export duty under section 26; (e) drawback under sections 74-75; (f) any other class of applicants the Central Government notifies (subject to Parliamentary approval); or (g) excess duty paid by the importer before a clearance order, evident from a self-assessed or reassessed bill of entry — in which cases it is paid directly to the applicant.
(3) No refund shall be made except as provided in sub-section (2), notwithstanding any contrary judgment, decree, order or direction.
(4)-(5) Notifications under clause (f) of the first proviso to sub-section (2) must be laid before Parliament and are subject to approval or modification by resolution, and may be rescinded at any time.
