2017 (7) TMI 749 - AT - Customs

SAD refund - imported timber subsequently sold in the local market - denial of refund on the ground that there was no correlation between goods imported and goods sold - Held that - this Bench in the case of M/s. Hanuman Timber Co. Versus CC, Visakhapatnam 2016 (12) TMI 1367 - CESTAT HYDERABAD has eloquently laid down the facts of the case which are identical as is in these two cases and held that appellant is eligible for refund - appeal allowed - decided in favor of appellant.

Summary

Issues involved:
Appeal against Order-in-Appeal denying refund of SAD paid on imported timber subsequently sold in the local market.

Analysis:
The appellant raised the issue of denial of refund of SAD paid on imported timber sold in the local market, which was previously considered by the Tribunal in other appeal numbers. The counsel argued that the issue in these appeals was identical to the earlier cases that were decided in favor of the appellant. The Tribunal had previously laid down the facts of the case in a Final Order, highlighting discrepancies in the reasoning for denial of the refund by the lower authorities.

The Tribunal noted that the reason for denying the refund claim was the discrepancy between the logs described in the sales invoices and the import packing list. It was observed that the adjudicating authority did not clearly explain how the eligible quantity for refund was determined. The absence of a show-cause notice deprived the appellant of an opportunity to defend the case properly. The Tribunal emphasized that the packing list may not be a material document for granting a refund under the relevant Notification. The appellants contended that the logs were cut to facilitate transportation, leading to differences in dimensions, which was considered acceptable at the appellate stage.

Considering that the Tribunal had previously ruled in favor of the appellant on a similar issue involving the same assessee, the Bench decided to set aside the impugned orders and allowed the appeals with consequential reliefs. The decision was based on the consistency of the Tribunal's view in similar cases involving the appellant.

In conclusion, the Tribunal's judgment addressed the issue of denial of refund of SAD paid on imported timber sold in the local market, highlighting discrepancies in the reasoning provided by the lower authorities. The decision was based on the principle of consistency with previous rulings on identical issues involving the same appellant, ensuring fair treatment and relief in line with established legal interpretations.