SAD refund eligibility turns on substantive VAT compliance, not the filing date, where tax is paid within the prescribed period.

Refund of Special Additional Duty of Customs under Notification No. 102/2007-Cus depends on domestic sale of the imported goods, proof of SAD and sales tax or VAT payment, and filing within one year of SAD payment. Where the importer had paid SAD, sold the goods in the domestic market, and discharged VAT within the prescribed period, the claim satisfied the substantive refund conditions. Non-payment of VAT on the date of filing was treated as a matter of prematurity rather than a failure of eligibility, so rejection on that technical ground was unsustainable.

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Issues: Whether refund of Special Additional Duty of Customs could be denied on the ground that VAT had not been paid on the date of filing the refund application, when such VAT was paid within the prescribed period and other substantive conditions for refund were satisfied.

Analysis: Refund of SAD under Notification No. 102/2007-Cus dated 14/09/2007 is governed by the condition that the imported goods must be sold in the domestic market on payment of sales tax or VAT, supporting documents must evidence payment of SAD and sales tax, and the claim must be filed within one year from payment of SAD. The appellant had paid SAD, effected the relevant sale, and discharged the VAT liability within the one-year period. The objection that VAT was unpaid on the date of filing of the refund claim was treated as a mere prematurity issue, not a failure of substantive eligibility. Denial of refund on that technical ground was therefore held unsustainable.

Conclusion: Refund could not be rejected merely because VAT had not been paid on the date of filing, where the payment was made within the statutory period and the substantive conditions were met.

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