Special Additional Duty refund cannot be denied for invoice-description mismatch where notification conditions are otherwise satisfied.

Refund of Special Additional Duty under Notification No. 102/2007-Cus. could not be denied merely because the description in the Bills of Entry differed from the domestic sales invoices, where the substantive conditions of the notification and CBEC circulars were satisfied. The Bills of Entry contained the required customs description, the invoices identified the imported goods and relevant Bills of Entry, and the buyer declaration against SAD credit was present. Collection of sales tax or VAT also showed domestic sale of the imported goods. A mere variation in trade description was not a valid ground to refuse refund, and the denial was unsustainable.

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Issues: Whether refund of Special Additional Duty could be denied merely because the description of the imported goods in the Bills of Entry differed from the description used in the domestic sales invoices, when the conditions of the notification and circulars were otherwise complied with.

Analysis: The refund claim was examined against the requirements of Notification No. 102/2007-Cus. dated 14.09.2007 and the related CBEC circulars. The record showed that the Bills of Entry contained the complete description required for customs valuation, while the domestic invoices referred to the imported goods, disclosed the relevant Bills of Entry, and carried the necessary declaration that the buyer would not get credit of the special additional duty. The invoices also reflected collection of the applicable sales tax or value added tax, showing that the imported goods had been sold in the domestic market. In that setting, a mere variation in the form of description, especially where the trade description was used for local sale identification, was not a valid basis to deny the refund.

Conclusion: The mismatch in description did not defeat the refund claim. The denial of refund was unsustainable and the assessee was entitled to the benefit of the notification.

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