SAD refund condition satisfied where buyer could not claim credit, even without invoice endorsement.

Refund of Special Additional Duty under Notification No. 102/2007-Customs was treated as admissible despite the invoice lacking the endorsement that SAD credit would not be available to the buyer, because the buyer was not registered with the Central Excise department and therefore could not avail credit in any event. On that factual basis, the endorsement requirement was regarded as substantially satisfied for refund purposes, and rejection of the claim was considered unsustainable. The stated ratio is that a refund condition tied to denial of SAD credit is fulfilled where the buyer has no capacity to take such credit.

---

---

Issues: Whether refund of Special Additional Duty was admissible where the invoice did not carry the endorsement that credit of SAD would not be available to the buyer, but the buyer was not registered with the Central Excise department and could not avail credit.

Analysis: Under Notification No. 102/2007-Customs dated 14.09.2007, refund of SAD is linked to the condition that the invoice should bear an endorsement that credit of SAD will not be available to the buyer. The authority found that, on the facts, the absence of such endorsement did not result in any possibility of credit being availed because the buyer was not registered with the Central Excise department. Since the buyer could not take credit in any event, the condition attached to the notification was treated as satisfied for the purpose of refund.

Conclusion: The refund claim was admissible and the rejection was unsustainable; the appeal was allowed in favour of the assessee.

Final Conclusion: Compliance with the refund notification was treated as fulfilled where the buyer had no capacity to take SAD credit, entitling the importer to refund.

Ratio Decidendi: A refund condition requiring endorsement denying SAD credit is satisfied where, on the facts, the buyer cannot avail such credit.

---