2014 (3) TMI 560 - AT - Customs

Appellant's SAD refund claim denied as imported goods not for resale under Notification No. 102/2007-Cus

RELIANCE GAS TRANSPORTATION INFRASTRUCTURE LTD. Versus CC., MUMBAI-I

The Tribunal upheld the rejection of the appellant's refund claim for Special Additional Duty (SAD) under Notification No. 102/2007-Cus. The appellant ... Denial of refund claim - Refund claim of SAD - Notification No. 102/2007-Cus., dated 14-9-2007 - sale of used capital goods - Held that:- capital goods imported by the appellant are not sold ‘as such’ but sold after put into use. Therefore, as discussed above, the appellant is not entitled for refund of SAD @ 4% as they have failed to discharge their entitlement for the benefit of Notification No. 102/2007 - Decided against assessee. Issues involved:Refund claim of SAD denial under Notification No. 102/2007-Cus.Analysis:Issue 1: Refund claim of SAD denial under Notification No. 102/2007-Cus.The appellant imported capital goods under the EPCG scheme, initially cleared at a concessional duty rate. After opting out of the scheme, the Bills of Entry were reassessed, and 4% SAD was paid by the appellant. Upon clearance of goods, a refund claim for SAD under Notification No. 102/2007-Cus. was filed but rejected by the adjudicating authority and the Commissioner (Appeals). The appellant contended that since they paid SAD and VAT, they were entitled to a refund as per the notification. The Revenue argued that the benefit applies to subsequent sale of imported goods with duty paid at importation, which was not the case here. The Tribunal found that SAD is payable on imported goods to counterbalance VAT/sales tax, and the appellant did not meet the conditions of Notification No. 102/2007 as the goods were used, not imported for subsequent sale. The Tribunal upheld the rejection of the refund claim based on these findings and relevant legal provisions.Key Points:- SAD payable on imported goods to offset VAT/sales tax.- Conditions of Notification No. 102/2007 not met as goods were used, not imported for subsequent sale.- Tribunal upheld rejection of refund claim based on legal provisions and factual analysis.Significant Phrases:- Notification No. 102/2007-Cus.- EPCG scheme- SAD @ 4%- Customs Tariff Act, 1975- Refund claim rejection- Tribunal's analysis and decisionThis detailed analysis covers the issues involved in the legal judgment, providing a comprehensive understanding of the case and the Tribunal's decision regarding the refund claim denial under Notification No. 102/2007-Cus.