2022 (11) TMI 604 - AT - Customs

Refund of SAD - difference of opinion between Hon ble High Courts of Bombay and Delhi on the issue - HELD THAT - There is no dispute that the Hon ble High Courts of Bombay and Delhi have expressed divergent views and the Jurisdictional High Court in COMMISSIONER OF CUSTOMS (SEA) , CHENNAI-II VERSUS HLG TRADING 2018 (10) TMI 1819 - MADRAS HIGH COURT , had chosen to follow one of the decisions which was in favour of the tax payer. In its subsequent decision in the case of THE COMMISSIONER OF CUSTOMS, CHENNAI VERSUS CMS INFO SYSTEMS LIMITED 2022 (6) TMI 436 - MADRAS HIGH COURT , Hon ble High Court of Madras has felt it proper to remand the matter back to the file of the adjudicating authority to await the outcome of the SLP filed against the order passed by the Hon ble Bombay High Court in the case of CMS Info Systems Limited. The earlier decision in the case of COMMISSIONER OF CUSTOMS (SEA) , CHENNAI-II VERSUS HLG TRADING 2018 (10) TMI 1819 - MADRAS HIGH COURT appears to have not been brought to the notice of the Hon ble High Court and in any case, following the latest decision of the Jurisdictional High Court, it is opined that the matter could be sent back to the file of the adjudicating authority, who shall follow the directions of Hon ble High Court and to await the outcome of the SLP in the case of CMS Info Systems Limited, and then pass a denovo order in terms with the decision of the Hon ble Apex Court. Appeal allowed by way of remand.

Summary

Issues:
Refund claim of Special Additional Duty (SAD) correctness.

Analysis:
The only issue before the Appellate Tribunal was the correctness of the refund claim of Special Additional Duty (SAD) by the appellant. The appellant's advocate relied on judgments of the Hon'ble High Courts of Delhi and Madras, emphasizing that the duty was paid on a specific date, but goods were released in parts, affecting the refund claim timeline. The Hon'ble High Court of Madras, in a recent decision, ruled on a similar matter, setting aside previous orders and remanding the case for fresh consideration based on the outcome of a pending Special Leave Petition (SLP) before the Hon'ble Supreme Court.

The Appellate Tribunal considered the arguments presented by both parties and noted the conflicting views expressed by the Hon'ble High Courts of Bombay and Delhi on similar issues. Referring to the latest decision of the Hon'ble High Court of Madras, the Tribunal decided to allow the appeal by remanding the case back to the adjudicating authority. The Tribunal directed the adjudicating authority to follow the directions of the Hon'ble High Court and await the outcome of the pending SLP related to a similar case before the Hon'ble Supreme Court, emphasizing the importance of aligning with the latest legal developments.

In conclusion, the Appellate Tribunal allowed the appeal by remanding the case for fresh consideration, in line with the latest legal developments and pending SLP before the Hon'ble Supreme Court. The Tribunal's decision aimed to ensure consistency with the evolving legal interpretations and directives from the higher courts, emphasizing the need for adherence to the latest judicial precedents in resolving the issue at hand.