Exemption notification benefit cannot be curtailed by circulars where SAD refund conditions are otherwise satisfied.

Refund of Special Additional Duty by re-credit in the licence or scrip was upheld where the re-credit was made before 30.09.2013 and no later re-credit was shown. The exemption notification did not require the SAD to have been paid only in cash, and entitlement under Notification No. 102/2007-Cus could not be withdrawn by departmental circulars when the notification's conditions were otherwise satisfied. The refund by re-credit was therefore proper, and the Revenue's challenge failed.

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Issues: Whether refund of 4% Special Additional Duty could be sanctioned by re-credit in the licence/scrip after 30.06.2013 and whether departmental circulars could curtail the entitlement under Notification No. 102/2007-Cus dated 14.09.2007.

Analysis: The re-credited amounts were found to have been given before 30.09.2013, and it was not shown that any re-credit was allowed after that date. The notification did not require that the SAD must initially have been paid only through cash. The entitlement arising under the exemption notification could not be taken away by departmental circulars, especially when the conditions of the notification were otherwise satisfied.

Conclusion: The refund by way of re-credit was proper and the Revenue's challenge failed.

Ratio Decidendi: A benefit validly accrued under an exemption notification cannot be curtailed by departmental circulars, and the absence of a condition requiring initial cash payment does not defeat entitlement where the notification's conditions are otherwise fulfilled.

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