2017 (6) TMI 360

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..... fter importing the impugned goods, supplied them to the Delhi Metro Rail Corporation (DMRCL) on the strength of a tax invoice. However, no VAT was charged on these supplies by the Appellant to DMRCL as Government of Rajasthan exempted payment of VAT on 'transfer of property in goods involved in execution of works contract relating to Metro Rail Project in Jaipur City awarded to DMRCL vide notification dated 06.10.2010 issued from F.12(100) FD/Tax/10-79 under Section 8(3) of the Rajasthan Value Added Tax Act, 2003. 4. Accordingly, the appellant filed following refund claims on 10.12.2013, 10.01.2014 and 04.02.2014 for refund of SAD under Notification no. 102/2007-Cus. which were rejected by the original authority. Claim Date Bill of Entr .....

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..... RCL and paid SAD at the rate of 4% in terms of Customs notification no. 19/2006 dated 01.03.2006. However, at the time supply of these goods to DMRCL, even though tax invoice was issued, no VAT was charged on these supplies in terms of notification dated 06.10.2010 issued by Rajasthan Government exempting the goods from payment of VAT. The dispute is whether in such circumstances, the appellant will be eligible for payment of refund of SAD, by considering the NIL rate of VAT as appropriate payment of VAT. 9. We find that an identical issue came up before the Tribunal in the case of Gazal Overseas (Supra) in which the Tribunal allowed payment on refund of SAD. We reproduce below the relevant para of the decision: "4. We have considered the .....

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..... ntitled to refund of SAD which was 4% so long as VAT/sales tax was paid. In other words, so long as appropriate VAT/Sales tax was paid, SAD refund was admissible even if the appropriate sales tax/VAT was less than SAD; if the sales tax/VAT was NIL, so be it. In other words what is required in terms of the said notification is payment of appropriate sales tax/VAT regardless of the rate thereof. It logically follows that if the appropriate rate of sales tax/VAT was NIL then the appropriate sales tax/VAT paid will also be NIL. 5. In the light of the foregoing discussions, we find that the impugned order is not sustainable. Accordingly we set aside the same and allow the appeals with consequential relief, if any." 10. In view of the above dec .....

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