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2018 (5) TMI 1246 - AT - CustomsSAD Refund - N/N. 102/97-Cus. - Jurisdiction - refund applied before wrong officer - Held that - Special Additional Duty (SAD) @ 4% was introduced to provide a level playing field to the domestic manufacturers who suffer VAT (which is not leviable on the imports). If the imported goods are further sold on payment of VAT, the SAD is refunded as per the notification 102/97-Cus. The technical fault of the assessee in applying for the refund to the wrong officer and the fault of the departmental officers in sanctioning the refund are both Revenue neutral. Appeal dismissed - decided against Revenue.
Issues:
1. Refund of Special Additional Duty (SAD) under Notification No. 102/97-Cus. 2. Jurisdictional officer for filing refund application. 3. Compliance with conditions of the notification. Analysis: Issue 1: Refund of SAD under Notification No. 102/97-Cus The appellant imported jute yarn from Bangladesh exempted from Basic Customs Duty and CVD but paid SAD @ 4%. The lower authority rejected the refund application citing non-payment of BCD and CVD, as required by the notification. The Commissioner (Appeals) allowed the appeal, stating that if goods are exempted from BCD and CVD, there is no violation if these duties are not paid. The Commissioner (Appeals) also ruled that for goods sold on a commercial invoice, no specific endorsement regarding SAD is necessary, following a precedent set by the Tribunal. The Assistant Commissioner sanctioned the refund based on this decision, which the Department contested, leading to the current appeal. Issue 2: Jurisdictional officer for filing refund application Condition No. 3 of the notification stipulates that the refund application must be filed with the jurisdictional officer. The appellant filed the application with the Assistant Commissioner of Central Excise, Vizianagaram, instead of the jurisdictional officer at ICD Petrapole in West Bengal. The Department argued that the refund was sanctioned by an unauthorized officer, violating a basic condition of the notification. Issue 3: Compliance with conditions of the notification The Tribunal noted that the only disputed condition was the filing of the refund application with the wrong officer. The Department did not raise the jurisdiction issue before the Commissioner (Appeals) or contest the order remanding the matter back for refund sanction. The Tribunal emphasized the importance of following jurisdictional protocols to avoid confusion and chaos in refund processes. Despite the technical fault in filing the application with the wrong officer, both the appellant and departmental officers were found to be revenue-neutral. As there was no monetary loss to the Revenue and no dispute on the merits of the refund, the Tribunal rejected the appeal, affirming the decision of the Commissioner (Appeals). In conclusion, the Tribunal upheld the sanction of the SAD refund, emphasizing the importance of compliance with jurisdictional requirements in refund applications to maintain clarity and efficiency in revenue matters.
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