Background: The petitioner paid certain dues through web portal. However, due to failure of web portal system, receipt was not generated. Hence, it was forced to again pay the dues. It applied for refund of the dual payment.
The statute (Section 19 of Lighthouse Act, 1927) provided that where Light Dues were paid more than the amount payable, refund should be claimed within six months. However, the petitioner filed a refund claim for the aforesaid dual payment beyond the limitation period prescribed under the statute. Hence, the refund claim was rejected by the Customs authorities.
Issue: Can refund of such dual payment be claimed without limitation?
Decision: Excess payment of Light Dues can occur in situations where payment is made disproportionately, disregarding the tonnage of the ship or in respect of notified rates. Such instances are covered within the limitation period prescribed under Section 19 ibid. Hence, the erroneous dual payment made by the petitioner does not amount to excess payment in the perspective envisaged by Section 19 ibid. Consequently, the limitation period prescribed therein would not operate.
Levy of tax / dues should be under the authority of law. The State is not supposed to unduly enrich through erroneous / forced / inadvertent payment of monies by the citizens.
Comments: The aforesaid ruling neatly distinguishes between excess payment envisaged by law and erroneous dual payment. This ruling may apply to situations where assessee pays an amount erroneously and applies for refund after the limitation period prescribed under Section 54 of the CGST Act.