Revenue loses appeal as SAD refund allowed despite missing original challans and product description mismatch

CESTAT Bangalore dismissed Revenue's appeal regarding SAD refund denial. The appellant imported LLDPE but cleared goods as LDPE without producing original duty paid challans. The Tribunal held that per 28.4.2008 circular, statutory auditor/CA certificates correlating ST/VAT payment with sales invoices are acceptable substitutes for original documents. Since CA and Commercial Tax Officer certified sales summaries against each Bill of Entry, and statutory auditor confirmed VAT payments to Government Account, refund denial based solely on missing original documents and description mismatch was invalid. SAD refund was allowed.

---

---

Issues involved: Refund of Special Additional Duty (SAD) u/s Notification No.102/2007-Cus. for 118 Bills of Entry, rejection based on lack of original duty paid challans and mismatch in goods description.

Refund for 41 Bills of Entry: Commissioner (A) allowed refund, citing 4% tax liability regardless of LDPE/LLDPE, and mismatch due to VAT invoice preparation. Department appealed, claiming non-satisfaction of Notification conditions. Tribunal referred to circular accepting Chartered Accountant certificate in lieu of original documents, citing similar cases.

Refund for 7 Bills of Entry: Commissioner (A) rejected refund due to unavailability of original Bills of Entry and TR-6 challans. Assessee appealed, arguing satisfaction of all conditions except document production. Tribunal upheld assesse's appeal, emphasizing Chartered Accountant certification of VAT payment and goods clearance.

Appeal No. C/961/2012: Revenue contested refund for 41 Bills of Entry, citing description mismatch and lack of Chartered Accountant certificate for VAT payment. Tribunal referred to circular allowing certificate in place of original documents, and upheld assesse's appeal based on similar cases.

Appeal No. C/1056/2012: Assessee's appeal for 7 Bills of Entry rejected by Commissioner (A) due to missing original documents. Tribunal allowed assesse's appeal, emphasizing Chartered Accountant certification and compliance with Notification conditions.

In conclusion, the Tribunal dismissed Revenue's appeal and allowed the assesse's appeal, highlighting the importance of Chartered Accountant certification and compliance with Notification conditions for refund eligibility.

---