2022 (10) TMI 13 - AT - Customs

Refund of SAD - denial of refund of SAD in respect of sizes of aluminum foil which were not appearing in the import bills of entry on which SAD was paid - HELD THAT - The appellant has not been able to satisfy why the size of aluminum foil mentioned in domestic sale in respect of which refund of SAD has been claimed did not figure in their import details. In absence of any evidence to that effect, the appellant has failed to establish that goods on which SAD refund has been claimed are the same goods on which SAD was paid. There is no merit in the appeal. The same is dismissed.

Summary

Issues:
Appeal against rejection of refund under Notification No.102/2007-Cus dated 14.09.2007.

Analysis:
The appellant, M/s. Sagar Rubber Products Pvt Ltd, filed appeals against the rejection of their refund claim under Notification No.102/2007-Cus dated 14.09.2007. The appellant imported Aluminum foils, paid SAD, and sold them domestically. The issue arose when the sizes of aluminum foil sold domestically did not match exactly with the sizes mentioned in the import bills of entry on which SAD was paid. The appellant argued that despite slight mismatches, they should still be eligible for a refund as they provided evidence showing a correlation between the sizes of aluminum foil imported and sold domestically.

The Adjudicating Authority rejected the partial refund claim based on discrepancies between the sizes of aluminum foil imported and sold domestically. The Authority found that the correlation between the imported goods and the goods sold domestically was not established except for certain sizes. The appellant's explanation that they cut the imported aluminum foil to match customer requirements was not considered sufficient to establish a connection between the imported and sold goods. The Authority emphasized the importance of establishing a clear correlation between the imported and sold goods for the refund claim to be admissible.

The Adjudicating Authority also highlighted the conditions specified in Notification No. 102/2007-Cus dated 14.09.2017, emphasizing the need for a correlation between the imported and sold goods for the refund of SAD. The appellant's failure to provide sales invoices for various sizes of imported Aluminum Foil further weakened their case for the refund claim. The Authority held that the essential condition of establishing a correlation between the imported and sold goods was not met, leading to the rejection of the refund claim.

In another appeal, similar observations were made regarding the appellant's failure to satisfy why the size of aluminum foil mentioned in domestic sales, for which SAD refund was claimed, did not match their import details. The lack of evidence to establish that the goods on which SAD refund was claimed were the same as those on which SAD was paid resulted in the dismissal of the appeal. The Tribunal found that the appellant failed to prove the required correlation between the imported and sold goods, leading to the rejection of the refund claim. The appeal was dismissed, emphasizing the importance of establishing a clear connection between the imported and sold goods for refund eligibility.