Appellate Tribunal grants SAD refund appeal based on proper invoice endorsements /CST

The Appellate Tribunal ruled in favor of the appellant, allowing the appeal for the refund of Special Additional Duty (SAD). The Tribunal found that the appellant, as a trader, cleared goods on payment of VAT/CST, as required, and the invoice contained the necessary endorsement regarding the non-admissibility of additional duty on customs. The Tribunal emphasized the importance of proper endorsements on invoices and clarified the eligibility requirements for SAD refund under Section 28C of the Customs Act. The impugned order was set aside, and the Adjudicating Authority was directed to implement the decision within 30 days.

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Issues:
Refund of Special Additional Duty (SAD) denial.

Analysis:
The appellant, a trader, imported goods and paid SAD, later clearing the goods on payment of CST/VAT and filing a refund claim for the SAD paid. The claim was rejected citing non-mention of duty component in the invoice and absence of an endorsement regarding non-admissibility of additional duty on customs. The appellant contended that as a trader, they clear goods on payment of VAT/CST with proper endorsement on the invoice. The appellant argued that Section 28C of the Customs Act does not mandate showing duty component separately as no duty is paid on these goods. The appellant relied on a previous decision to support their case.

The Appellate Tribunal noted that Section 28C requires duty payment to be reflected in the sale invoice. In this case, the appellant did not pay any duty other than VAT/CST, which was shown separately in the invoice. The Tribunal found that SAD refund is applicable when goods are cleared on payment of VAT/CST. Upon examining the invoice, the Tribunal observed a clear endorsement stating that no credit of additional duty of customs is available to the buyer. The Tribunal disagreed with the Commissioner's finding that the invoice lacked the required endorsement, deeming it factually incorrect. Consequently, the impugned order was set aside, and the appeal was allowed with consequential relief. The Adjudicating Authority was directed to implement the order within 30 days of receipt.

In conclusion, the Tribunal ruled in favor of the appellant, emphasizing the importance of proper endorsements on invoices and clarifying the requirements for SAD refund eligibility under Section 28C of the Customs Act.

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