Exemption notification benefits cannot be curtailed by circulars; SAD refund by re-credit remained valid within the applicable framework.

SAD refund by re-credit in the relevant licences remained valid where the re-credit was made within the applicable circular framework and before the extended cut-off date, and the refund scheme did not require the duty to have been paid only in cash. A benefit conferred by an exemption notification could not be curtailed by departmental circulars, so the departmental challenge failed and the impugned order was sustained.

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Issues: Whether the sanction of Special Additional Duty refund by way of re-credit in the relevant licences after 30.06.2013 was proper, and whether the departmental appeals could succeed in view of the earlier decision on the same issue.

Analysis: The Court noted that the earlier order had already held that utilisation of re-credited amounts was permitted and revalidated by CBEC circulars till 30.06.2013 and extended up to 30.09.2013, and that the re-credits in the matter had been granted before 30.09.2013. It was also observed that Notification No. 102/2007-Cus did not require SAD to be initially paid only in cash, and that a right conferred by an exemption notification could not be taken away by departmental circulars.

Conclusion: The impugned order was held to be correct and the Department's appeals were held to be without merit.

Ratio Decidendi: A benefit granted under an exemption notification cannot be curtailed by departmental circulars, and SAD refund by re-credit remains valid where the re-credit is permitted within the applicable circular framework and consistent with the notification.

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