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TMI Blog2024 (8) TMI 1158X X X X Extracts X X X X X X X X Extracts X X X X ..... ing a trader who cleared the goods on the strength of commercial invoices. The judgment went on to examine the genesis and object of the levy and the role of the exemption notification, which is very useful in understanding the issue. A similar view is also relevant for discrepancies noticed in the description of goods between the sales invoice and the Bill of Entry in the impugned case. Grounds such as minor mismatch in description of goods in the invoice, and clerical errors in dates do not go to the root of the validity of the refund claim and are curable. The CA s Certificate along with the reconciliation statement has been prescribed in Boards Circular to provide a ledger/ document-based scrutiny of the claim and should ordinarily be relied upon to sanction the claim - Regular cash inflows are the lifeline of a trade / business and blocking legitimate claims on half-baked reasons does a great dis-service and should be avoided. The Hon ble Madras High Court in its judgment in PP PRODUCTS LTD. VERSUS COMMISSIONER OF CUSTOMS, CHENNAI SEAPORT COMMISSIONERATE-IV [ 2019 (5) TMI 830 - MADRAS HIGH COURT ], examined whether the Tribunal, in the face of documentary evidence produced by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d also they submitted Xerox Copies of Bills of Entry. Original TR6 Challans, Sales Invoices, Payment of Sales Tax Monthly Returns, Photocopy of Documents evidencing Payment of appropriate VAT/CST and Original Chartered Accountant Certificate for the payment of VAT by the appellant on subsequent sale, Original Invoices of sale of imported goods in respect of which refund of said Additional CVD is claimed and also furnished Original Copy of Abstract of Ledger and requested to process the Refund Applications. The appellant after receiving certain queries from the Assistant Commissioner of Customs, had submitted original Certificate of Statutory Auditor, and also Certificate endorsing by Chartered Accountant on working sheet in token of verification of correlation between imports sales VAT/CST payment, Original Self Declaration for non-passing of4% SAD with details of Sales Bills, Copy of Stock Register. Copy of non-passing of 4% SAD Invoices, Copy of VAT/Sales Tax paid, Bank Statement and requested to refund the 4% Additional Duty of Customs. However, order was passed by the respondent by rejecting the refund claim filed by the appellant for an amount of Rs.3,53,213/- for non-fulfilme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Tribunals judgment is extracted below; 5.1 It would be useful and appropriate at this juncture to understand the genesis of the levy of Special Additional Duty of Customs (SAD). While moving the proposal for this levy in the Finance Bill, 1998, the Hon ble Finance Minister of India stated as follows in his Budget Speech: I am persuaded about a clear disability that our commodity taxation inflicts on the indigenous goods vis- -vis the imported goods. While the former are subjected to sales tax and other local taxes and levies, the import sector escapes them by their very nature. In order to provide a level playing-field to the domestic industry, I propose to impose an additional non-modvatable levy of 8% on imports which is approximately equal to the burden of local taxes on domestic producers. This duty should not be viewed as a protectionist measure but only as a response to a legitimate demand for a level playing field. The new levy would not apply to crude oil, newsprint, capital goods sector under a special tariff regime or goods which are subjected to additional duties of excise in lieu of sales tax, gold and silver imported by passengers or other nominated agencies and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arise at all. Therefore, non-declaration of the duty in the invoice issued itself is an affirmation that no credit would be available. Therefore, non-declaration/ non-specification of the duty element as to its nature and quantum in the invoice issued would itself be a satisfaction of the condition prescribed under clause (b) of para 2 of the Notification 102/2007. A similar view is also relevant for discrepancies noticed in the description of goods between the sales invoice and the Bill of Entry in the impugned case. Grounds such as minor mismatch in description of goods in the invoice, and clerical errors in dates do not go to the root of the validity of the refund claim and are curable. The CA s Certificate along with the reconciliation statement has been prescribed in Boards Circular to provide a ledger/ document-based scrutiny of the claim and should ordinarily be relied upon to sanction the claim. If a serious evasion of duty was suspected physical inquiry could have been conducted by revenue with the buyers or in any other manner and the CA s Certificate along with reconciliation statement discredited, while taking action to deny the claims. There would then be proper groun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re quoted hereinbelow :- . It is seen from the tabular column of discrepancy given in the Order-in-Original by the lower authority, only the grades of the granules are missing but the description HDPE and LDPE is found in both the documents. It is seen that the appellants have used the generic description of the imported goods in the sales invoices and non-mentioning of grade will not change the imported goods different. Hence, the goods imported and the goods sold are one and the same and are co-relatable. The lower authority has not issued any DM or PH to the appellants for making the deficiencies good or to make any submissions. The department has not proved that the goods sold are different from the goods imported. The lower authority has not disputed the fulfillment of the other substantive conditions of the notification by the appellants. Rejection of partial amount of refund on this flimsy ground is not sustainable. 12. The finding of the Tribunal, in our considered view, is not sustainable, considering the facts and circumstances of the case, as the adjudicating authority himself was satisfied that substantial amount of claim for refund was sustainable. 13. Thus, for the ab ..... X X X X Extracts X X X X X X X X Extracts X X X X
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