2017 (11) TMI 1580 - AT - Customs

SAD Refund - whether change in description of the goods in domestic retail invoice, is sufficient ground to deny benefit of refund under N/N. 102/2007? - Held that - The goods imported in bulk from Indonesia having sold on retail basis, on certified sales invoices, which have been and assessed at the hands of the VAT authorities and which have been certified by the statutory auditor and the appellant, there cannot be any doubt that the goods imported were sold on AS IT IS basis - The attempt of the department to verify the sales by addressing the letters to some of the buyers has not elicited any response and that cannot mean that the goods were not sold to them - rejection of refund unjustified - appeal allowed - decided in favor of appellant.

Summary

Issues:
1. Refund of special additional duty of customs on imported goods.
2. Denial of refund under Notification No. 102/2007.
3. Change in description of goods in domestic retail invoice affecting refund eligibility.

Analysis:

Issue 1: Refund of special additional duty of customs on imported goods
The appellant imported 'gambier' and 'gambier extract booch' from Indonesia and discharged special additional duty of customs on the imports. The goods were then sold on retail basis in the same form in which they were imported. Claims for refund of special additional duty were lodged with the jurisdictional Assistant Commissioner of Customs, supported by necessary documents. However, the claims were rejected under Orders-in-Original, leading to appeals to the Commissioner of Customs (Appeals) and subsequently to the present appeals.

Issue 2: Denial of refund under Notification No. 102/2007
The main contention raised on behalf of the appellant was the inconsistency in granting refunds for imports made in different periods. The Assistant Commissioner of Customs (Refunds) had granted refunds for similar imports made earlier, while the current claims were rejected. The Commissioner (Appeals) in a previous order had established that the imported goods were sold in "AS IT IS CONDITION" without any change in description, quantity, or involvement of manufacturing process. This previous order was upheld and considered final, leading to the conclusion that the denial of refunds was unjustified.

Issue 3: Change in description of goods in domestic retail invoice affecting refund eligibility
The crucial issue to be decided was whether a change in the description of goods in domestic retail invoices could be a sufficient ground to deny the benefit of refund under Notification No. 102/2007. The appellant argued that the goods were sold on a retail basis with certified sales invoices, assessed by VAT authorities, and certified by the statutory auditor. Despite attempts by the department to verify sales by contacting buyers, the lack of response should not invalidate the sales. The order of the Commissioner of Customs (Appeals) in a previous case established the equivalence of 'gambier' and 'gambier extract booch,' supporting the appellant's position and justifying the allowance of refunds in the present appeals.

In conclusion, the appeals were allowed, and the denial of refunds was deemed unjustified based on the established facts and previous orders. The decision was made in favor of the appellant, granting consequential relief as necessary.