Refund of special additional duty on sawn timber logs remains admissible when sales tax liability has been discharged.

Refund of special additional duty on imported timber logs remains admissible where the goods are sold after being cut or sawn into sizes for transportation, because such processing does not by itself defeat entitlement under Notification No. 102/2007-Cus. The Tribunal followed binding precedent that sawing imported timber, when sales tax liability has been discharged, does not bar refund, and it noted that the earlier view had been upheld by the High Court. Applying judicial discipline, it concluded that cutting the logs for transport did not make the refund claim ineligible and that denial of refund was unjustified.

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Issues: Whether refund of special additional duty was admissible when imported timber logs were sold after being cut into sizes for transportation.

Analysis: The dispute turned on the effect of cutting and sawing timber logs before sale under Notification No. 102/2007-Cus. The Tribunal relied on the earlier decision holding that sawing of imported timber does not, by itself, defeat refund where the sales tax liability has been discharged. It noted that the earlier view had been upheld by the High Court and that the Supreme Court had directed processing of refund claims subject to conditions, without staying the High Court's decision. Following that binding precedent and judicial discipline, the Tribunal held that cutting the logs into sizes for transportation did not render the refund claim ineligible.

Conclusion: The refund claim was admissible and the denial of refund was unjustified.

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