ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 29.07.2025
CESTAT Ahmedabad Allows Customs Duty Refund on Coastal Vessel
In a significant legal development, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Ahmedabad, has delivered a favorable judgment for Neha Shipping and Allied Services Pvt. Limited in their appeal against the recovery of Rs. β 11,05,908/- along with applicable interest. β The case revolved around the refund of excess customs duty paid during the coastal conversion of the vessel “MV Endurance.” β
Background of the Case
The dispute originated when Neha Shipping filed a refund claim for Rs. β 11,05,908/- after the final assessment of customs duty revealed a reduced liability compared to the provisional assessment. β While the Assistant Commissioner initially sanctioned the refund, the department challenged the decision, citing the doctrine of unjust enrichment under Section 18(5) of the Customs Act, 1962. β The Commissioner (Appeals) subsequently remitted the case for re-examination, leading to the refund amount being transferred to the Consumer Welfare Fund due to the appellant’s alleged failure to prove that the burden of excess duty was not passed on.
This Article has been written by Shri Ravi Shekhar Jha, Advocate Delhi High Court based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.
Source: CESTAT Ahmedabad
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