FOR destination sales documentary evidence controls exemption claims where the department fails to rebut invoice terms.

Invoices expressly describing clearances as consolidated FOR destination sales were treated as sufficient documentary evidence that transit risk and ownership remained with the seller during transit. The absence of separate purchase orders or written sale agreements was held, by itself, not enough to displace the invoice terms. Once the invoices recorded FOR destination pricing, the burden shifted to the department to produce evidence rebutting that basis before denying refund or exemption under Notification No. 56/2002-CE. As no effective inquiry or supporting evidence was shown, the demand and penalties were found unsustainable and the assessee's refund or exemption claim was maintained.

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Issues: Whether the appellant's clearances were sales on FOR destination basis so as to qualify for refund/exemption under Notification No. 56/2002-CE and whether the demand and penalties could be sustained.

Analysis: The invoices recorded a consolidated FOR price and described the sales as FOR destination basis. That contractual indication was not disputed by the department. On that basis, the risk of loss or damage in transit and ownership during transit were treated as remaining with the appellant. The absence of separate purchase orders or written sale agreements, by itself, was held insufficient to negate FOR destination sales. No effective inquiry or supporting evidence was shown by the department to dislodge the invoice terms, and the burden of disproving FOR basis lay on the department once the invoices so stated.

Conclusion: The sales were accepted as FOR destination basis, the impugned demand and penalties were unsustainable, and the appeals were allowed in favour of the assessee.

Final Conclusion: The orders below were set aside because the department failed to rebut the documentary indication that the sales were on FOR destination basis, making the refund/exemption claim maintainable.

Ratio Decidendi: Where invoices expressly record a consolidated FOR destination price, the department must produce evidence to disprove FOR basis before denying the corresponding exemption or refund.

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