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TMI Blog2014 (2) TMI 1060X X X X Extracts X X X X X X X X Extracts X X X X ..... ds. There being no such objection by the sales tax authorities, the Customs have to only satisfy themselves about the payment of sales tax and not about the correctness of the same - though the value of set top boxes was on the lower side the rate of sales tax discharged by them was 12.5% as against 4% SAD and as such more quantum of sales tax stand paid by them. Only condition of the notification in question is payment of appropriate VAT or sales tax. They are not having jurisdiction to go into the question of correctness of sales tax paid by the assessee. Inasmuch as the appellants had admittedly paid sales tax in the present case - invoices issued by the appellants, admittedly had packing list annexed to the same and STB was one of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had sold antenna system and accessories, which were different from the product imported i.e. STB. 3. Vide its impugned order Commissioner dropped a part of the demand of Rs. 6,98,92,047/- as barred by limitation. He also did not impose any penalty. He also held that there was no processing and manufacturing activity carried out on the set top box and held that the allegations in the show cause notice were unsubstantiated and lack evidence. However, he confirmed a part demand on the ground that the appellants have not paid appropriate VAT on the said goods and the invoices issued by the appellant do not mention set top boxes separately. 4. After hearing arguments of both sides, on the above two issues, we find that admittedly, set top b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er : The exemption contained in the said notification envisages 5.3 that the importer shall file a refund claim for 4% CVD ( said additional duty of Customs ) paid on imported goods and shall pay on sale of the said goods appropriate Sales Tax or VAT as the case may be . Hence, it is clear that there is no stipulation in the notification that the exemption is available only if the rate of ST/VAT is equal to or higher than the rate of additional duty of Customs; nor is there a condition that if the rate of ST/VAT happens to be lower than 4%, the refund would be restricted to the lower amount. As such, it is clarified that it will not be appropriate to reduce the refund amount in such a situation and the entire 4% CVD, if otherwise found ..... X X X X Extracts X X X X X X X X Extracts X X X X
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