Refund of Special Additional Duty (SAD) allowed on appeal due to mismatch in goods descriptions.

The appeal was allowed by the Member (J) as the denial of a refund of Special Additional Duty (SAD) was overturned. The mismatch in goods descriptions between Bills of Entry and sales invoices was deemed insufficient to deny the refund, especially when all other conditions under Notification No. 102/07-Cus. were met. Despite the discrepancy, the appellant had paid appropriate taxes on the goods sold in the domestic market. The Member (J) emphasized that the refund should not be denied solely based on a change in goods description in domestic invoices, ultimately ruling in favor of the appellant.

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Issues:
Refund of Special Additional Duty (SAD) denied due to mismatch in goods description between Bills of Entry and sales invoices.

Analysis:
The appeal was against the denial of a refund of Special Additional Duty (SAD) by the Commissioner (Appeals) Central Excise & Customs, New Delhi. The denial was based on the mismatch between the description of imported goods in the Bills of Entry and the sales invoices. The appellant claimed that all conditions under Notification No. 102/07-Cus. had been met, and the goods were sold in the domestic market with appropriate taxes paid. The advocate argued that a slight discrepancy in descriptions should not bar the refund, citing a Tribunal decision supporting this view.

The Revenue, represented by the ld. DR, reiterated the findings of the impugned order, emphasizing the appellant's burden to prove the non-recovery of SAD amount.

Upon review, the Member (J) found that while the conditions of the notifications were met, the mismatch in goods descriptions was the sole reason for the denial. The Bills of Entry had detailed descriptions for customs valuation, while sales invoices used simpler terms for trade purposes. The retail invoices referenced the Bills of Entry, stated the non-availability of customs duty credit, and clearly mentioned the applicable taxes. The Member (J) concluded that the refund should not be denied solely due to a change in goods description in domestic invoices, especially when all other requirements were fulfilled. Citing a previous Tribunal decision for support, the appeal was allowed, setting aside the impugned order in favor of the appellant.

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