2024 (3) TMI 808 - AT - Customs

Refund of SAD - rejection of refund on the ground that the appellant failed to submit Chartered Accountant certificates and there had been no endorsements in the sales invoices indicating non-availibility of CENVAT credit on the imported goods sold - HELD THAT - It is found that the conditions on which refund claims have been rejected are complied with by the appellant inasmuch as (i) Chartered Accountant certificate produced at pages 28 and 29 (in respect of appeal No. C/21068/2015) and pages 44-54 (in respect of appeal No. C/21484/2015) of the appeal paper-books (ii) Sample copy of invoice indicating endorsement is placed at page 25 and 41, respectively. Also, it is now settled law that endorsement in the sales invoice regarding non-availability of CENVAT credit cannot be a reason to deny the SAD refund. The impugned orders are set aside - Appeal allowed.

Summary

Issues involved:
The issues involved in the judgment are the rejection of Special Additional Duty (SAD) refund claims by the authorities based on the grounds of failure to submit Chartered Accountant certificates and lack of endorsements in sales invoices indicating non-availability of CENVAT credit on imported goods sold.

Issue 1: Non-endorsement of availability of CENVAT credit in sales invoices

The appellants imported PVC profile frames through Cochin Port and paid SAD amounting to Rs.84,106/- and Rs.1,62,141/-, respectively. They later claimed a refund of the SAD amount as per Notification No.102/2007-Cus. The authorities rejected the refund claims citing the absence of Chartered Accountant certificates and lack of endorsements in sales invoices indicating non-availability of CENVAT credit on the imported goods sold. The advocate for the appellants argued that the issue of non-endorsement of CENVAT credit in sales invoices has been addressed in previous judgments and that Chartered Accountant certificates were indeed submitted but not considered by the authorities. The advocate provided evidence of endorsements in original invoice copies to support the claim.

Issue 2: Admissibility of SAD refund

The main issue for determination in the appeals was the admissibility of SAD refund claims of Rs.84,106/- and Rs.1,62,141/- filed by the appellants against respective Bills of Entry. The Tribunal found that the conditions for rejecting the refund claims were actually complied with by the appellants, as evidenced by the Chartered Accountant certificates and sample copies of invoices with endorsements provided in the appeal paper-books. The Tribunal also noted that the law is settled regarding the endorsement in sales invoices and confirmed that it cannot be used as a reason to deny the SAD refund. Consequently, the impugned orders were set aside, and the appeals were allowed with consequential relief.