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Issues involved: Challenge to the order on the ground of non-consideration of the issue regarding the refund claim on CVD and SAD paid by the respondent u/s import of Sulphuric Acid for the manufacture of fertilizer.
Summary: The appeal was filed against the Order-in-Appeal No. 20/2008 (V-II) Cus. dated 31-3-2008 passed by the Commissioner of Central Excise, Customs & Service Tax (Appeals), Visakhapatnam-IV. The learned SDR challenged the order on behalf of the Revenue, arguing that the CVD and SAD paid by the respondent on the import of Sulphuric Acid might have been included in the cost of the final products cleared by them. The Revenue contended that the respondent had not provided evidence regarding the non-inclusion of the refund claim amount in the value of the final products. However, the impugned order found that the appellants were eligible for a refund due to the exemption from CVD and SAD levies on Sulphuric Acid imported for use in the manufacture of fertilizer. The price of the final product (fertilizer) was controlled by the Government, and the manufacturer had no say in fixing the price. The exemption from duty was existing at the time of import, and the Government fixed the price of the fertilizer for the industry, not compensating for any duty erroneously paid. The learned Commissioner (Appeals) found that the manufacturer had not passed on the duty burden to the buyers, as the price of the end product was controlled by the Government. The impugned order was set aside, and the appeal was allowed with consequential benefit. The findings of the learned Commissioner (Appeals) were deemed strong, emphasizing that once the price is controlled by the Government, all aspects are considered before fixing the price. The appeal filed by the Revenue was dismissed based on these considerations.
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