2015 (2) TMI 511 - AT - Customs

Denial of refund claim - Refund of SAD in terms of Notification No. 102/2007-Cus. dated 14.9.2007 - Held that - Following decision of Chowgule & Company Pvt. Ltd. vs. CC&CE 2014 (8) TMI 214 - CESTAT MUMBAI (LB) - appellant has made out a case. - Decided in favour of assessee.

Summary

Issues:
Refund of Special Additional Duty (SAD) under Notification No. 102/2007-Cus - Requirement of endorsement on invoices for availing exemption.

Analysis:
The appeal before the Appellate Tribunal CESTAT MUMBAI was against an order-in-appeal regarding the refund of Special Additional Duty (SAD) under Notification No. 102/2007-Cus. The appellant imported goods, cleared them on payment of duty along with 4% SAD, and applied for the refund of SAD. The refund claims were partly allowed and partly rejected. The first appellate authority rejected the appeals partly due to the appellant not putting an endorsement on the invoices as required by clause 2(b) of Notification 102/2007-Cus. This clause mandated the importer to specify in the invoice that no credit of the additional duty of customs shall be admissible. The Revenue did not appeal against the order partially allowing the appellant's appeal.

The appellant argued that a similar issue was addressed by the Larger Bench of the Tribunal in a previous case, where it was held that an importer who paid SAD, discharged VAT/ST liability, and issued commercial invoices without indicating duty details would still be entitled to the exemption under Notification 102/2007-Cus. The Larger Bench clarified that this decision did not negate the need to fulfill other conditions of the exemption notification. The Tribunal found that the appellant's case aligned with the decision of the Larger Bench, allowing the appeal and setting aside the impugned order.

In conclusion, the Tribunal ruled in favor of the appellant, emphasizing that the appellant had met the conditions for exemption under Notification 102/2007-Cus, despite the absence of the required endorsement on the invoices. The judgment highlighted the importance of fulfilling all conditions of an exemption notification while interpreting specific requirements, ultimately granting relief to the appellant based on legal precedent and compliance with statutory provisions.