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TMI Blog2024 (10) TMI 733X X X X Extracts X X X X X X X X Extracts X X X X ..... ioner (Appeals) has rightly rejected the refund claims in the absence of necessary proof to show that the imported goods were cleared by the consignment agent and VAT was paid by them on behalf of the importer. Moreover, though they produced the Chartered Accountant certificate in one of the appeals and there is no such certificate on record for the second appeal. In the present cases, no such evidences are produced and having placed only a notarised copy of the Agreement copy, which is not relevant to the period of dispute and also without any other documentary evidences to prove that VAT was paid by them for being eligible for the benefit of the Notification, the refund claims are rightly rejected. In the case of Union of India Versus VKC Footsteps India Pvt. Ltd. [ 2021 (9) TMI 626 - SUPREME COURT ], the Hon ble Supreme Court of India observed ' when the first proviso to Section 54(3) has provided for a restriction on the entitlement to refund it would be impermissible for the Court to redraw the boundaries or to expand the provision for refund beyond what the legislature has provided. If the legislature has intended that the equivalence between goods and services should be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... substantive evidences. It is also submitted that the agreement between the importer and the consignment agent and statutory auditor certificate showing the transfer of stock to the stockist are the sufficient reasons for sanctioning the refund. Relied on the decision of the Tribunal in the case of M/s. Arushi exports vs. Commissioner of Customs Imports (NCH) Mumbai in Customs Appeal No.424 of 2012 dated 03.08.2015. 4. The learned Authorised Representative on behalf of the Revenue submitted that the appellant who claims refund under Notification No.102/2007-Cus. dated 14.09.2007 has to satisfy all the conditions specified in the Notification. And in the case of sales through the Stockist, Circular No.16/2008 dated 13.10.2008 clearly mentions that there should be an agreement between the importer and the stockist and there should be an endorsement on the invoices to that effect. Having not satisfied the above conditions, the Commissioner (Appeals) has rightly rejected the refund claims. Moreover, none of the documents claimed to have been placed on record are not available including the invoices. 5. Heard both sides. This is a case of refund claims filed under Notification No.102/200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed goods in respect of which refund of the said additional duty is claimed; (iii) documents evidencing payment of appropriate sales tax or value added tax, as the case may be, by the importer, on sale of such imported goods. 3. The jurisdictional customs officer shall sanction the refund on satisfying himself that the conditions referred to in para 2 above, are fulfilled. Circular No. 16/2008-Cus., dated 13-10-2008 F.No. 401/104/2007-Cus.III Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Clarification on refund of 4% Additional Duty of Customs (4% CVD) in pursuance of Notification No. 102/2007-Customs dated 14-9-2007 Regarding (viii) Consignment Agents : It is represented by certain importers who operate through consignment agents/stockists, that the imported goods are held by these agents/stockists in the capacity of bailee. The goods are sold by them on behalf of the importer and the payment for the sale is made to the importer. These agents also pay the appropriate ST/VAT on behalf of the importer and get the same reimbursed from the principal i.e. importer. Unlike in other transactions, while the bill of entr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t to the condition that the Consignment agent/stockist has been authorised to sell the imported goods in terms of the agreement entered into between the importer and consignment agent/stockist and that each of the sale invoices issued by the consignment agent/stockist indicates that the sale is made by him on behalf of the importer in the capacity of consignment agent/stockist. These conditions shall be verified by the Customs officers before sanction of 4% CVD refund claims in these cases. Further, in such cases, it is also required that the applicant submits a certificate from a Chartered Accountant appointed by the importer, who either certifies the importer s financial records under the Companies Act, 1956 or any ST/VAT Act of the State Government or the Income Tax Act, 1961, to the effect that appropriate ST/VAT has been paid by consignment agent/stockist on behalf of importer and that the importer, in turn, has paid or reimbursed the ST/VAT to his consignment agent/stockist along with the correlation of ST/VAT payment with 4% CVD paid on imported goods. 6. From the above Notification read with Circular No. 16/2008 dated 13.08.2008, it is clear that the importer should pay app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ainst which the refund was rejected were duly accounted in the books of account of the appellant towards consignment sale. On the basis of these undisputed facts discount that the sales under dispute are consignment sales . 8. In the present cases, no such evidences are produced and having placed only a notarised copy of the Agreement copy, which is not relevant to the period of dispute and also without any other documentary evidences to prove that VAT was paid by them for being eligible for the benefit of the Notification, the refund claims are rightly rejected. In the case of Union of India Versus VKC Footsteps India Pvt. Ltd.: 2021 (52) G.S.T.L. 513 (S.C.) dated 13-9-2021, the Hon ble Supreme Court of India observed as follows: 60. The jurisprudential basis furnishes a depiction of an ideal State of existence of GST legislation within the purview of a modern economy, as a destination-based tax. But there can be no gain saying the fact that fiscal legislation around the world, India being no exception, makes complex balances founded upon socio-economic complexities and diversities which permeate each society. The form which a GST legislation in a unitary State may take will vary ..... 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