Customs refund under Notification No. 102/2007-Cus cannot be denied solely because the invoice predates clearance of imported goods.

Refund of additional duty of customs under Notification No. 102/2007-Cus could not be refused merely because the sales invoice was issued before the Bill of Entry and customs release of the imported goods. The assessee supported its claim with the delivery challan, agreement terms and a Chartered Accountant-certified reconciliation statement to show that invoice issuance did not by itself prove prior sale or delivery of the imported goods. Rejection based only on suspicion, without conclusive evidence that the same goods were sold before clearance, was not sustainable. The refund issue was decided in favour of the assessee.

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Issues: Whether refund of additional duty of customs could be rejected merely because the sales invoice was issued before the customs release of the imported goods.

Analysis: Refund under Notification No. 102/2007-Cus dated 14.09.2007 was denied only on the ground that the invoice preceded the Bill of Entry and the release of goods. The appellant produced the delivery challan, agreement terms and reconciliation statement certified by a Chartered Accountant to show that issuance of the invoice did not by itself establish prior sale or delivery of the imported goods. The earlier authorities rejected the claim on suspicion rather than on conclusive evidence that the same imported goods had been sold before clearance.

Conclusion: The rejection of refund on the stated ground was not sustainable, and the issue was decided in favour of the assessee.

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