2014 (1) TMI 1670 - AT - Customs

Summary

Issues involved: Refund of SAD (VAT) under Maharashtra VAT Act and Central Sales Tax Act, submission of evidence of payment of VAT, jurisdiction of Customs Officer in sanctioning refund.

Summary:
The appellant was allowed a refund of SAD (VAT) by an order-in-original, but the Revenue appealed the decision on the grounds that the essential challan of payment of VAT was not annexed to the refund claim at the time of filing. The Appellate Commissioner upheld the appeal, stating that there was no evidence to show that VAT was paid before the filing of the refund claim. However, the Tribunal found that the documents evidencing payment of VAT must be available to the adjudicating authority at the time of considering the refund. The Tribunal noted that the payment of VAT was made within the due date, even though it was paid four days after the filing of the refund claim. Therefore, the appeal was allowed, the impugned order was set aside, and the order-in-original was upheld. The stay application was also disposed of.

The Tribunal referred to Notification No. 102/2007, which requires the importer to provide evidence of payment of appropriate sales tax or VAT at the time of filing the refund claim. The jurisdictional Customs Officer is responsible for sanctioning the refund by ensuring the conditions are met. The Tribunal emphasized the importance of submitting documents showing the payment of VAT to the adjudicating authority when considering the refund. The Tribunal found no discrepancy in the order-in-original as the payment of VAT was considered within the due date, despite being paid after the filing of the refund claim.