2018 (8) TMI 500 - AT - Customs

Recovery of Refund of SAD - N/N. 102/2007-Customs, dated 14.09.2007 - It was alleged that the importer has knowingly and deliberately submitted a forged and fabricated certificate of Chartered Accountant to fulfill the unjust enrichment condition to get refund of 4% Special Additional Duty paid at the time of importation. Whether the demand of erroneously refunded amount of Special Additional Duty to the appellant by the lower authority in terms of Section 28(8) of the Customs Act, 1962 is recoverable alongwith interest and penalty? Held that - In the present case the importer has knowingly and deliberately submitted a forged and fabricated certificate of Chartered Accountant to fulfill the condition that there is no unjust enrichment to get refund of 4% Special Additional Duty paid at the time of importation - the recovery of refund amount is allowed alongwith interest and penalty. Appeal dismissed - decided against appellant.

Summary

Issues:
- Whether the demand of erroneously refunded amount of Special Additional Duty is recoverable along with interest and penalty.
- Whether the appellant submitted a forged and fabricated certificate of Chartered Accountant to fulfill the unjust enrichment condition.
- Whether the impugned orders confirming the demand, interest, and penalty are sustainable.

Analysis:
1. The Commissioner (Appeals) decided four appeals arising from four Order-in-Original through one common order, consolidating all appeals for disposal.
2. The appellant was granted a refund of Special Additional Duty (SAD) on imported goods, with specific amounts mentioned in the orders.
3. The condition for refund under Notification N.102/2007-Customs required a certificate from a Chartered Accountant confirming that the importer did not pass on the Countervailing Duty burden to the buyer.
4. Upon verification, it was discovered that the Chartered Accountant's certificate submitted by the importer was found to be forged, as the Chartered Accountant was deceased.
5. Allegations were made that the importer knowingly submitted a fabricated certificate to meet the unjust enrichment condition for the SAD refund.
6. The lower authority confirmed the demand for the erroneously refunded amount of SAD under Section 28(8) of the Customs Act, 1962, along with interest and penalty, citing non-compliance with the necessary criteria.
7. The appellant's appeals questioned the recoverability of the demand, interest, and penalty imposed by the lower authority.
8. The issue revolved around whether the demand for the erroneously refunded amount, interest, and penalty were justified given the submission of a forged certificate by the importer.
9. After considering the facts and circumstances, the Tribunal upheld the impugned orders, dismissing the appeals filed by the appellants.

This detailed analysis covers the issues raised in the judgment, focusing on the submission of the forged certificate and the consequent demand for the erroneously refunded amount of Special Additional Duty, interest, and penalty.