Special Additional Duty refund may not be denied on hypertechnical defects when VAT payment and sale are proved.

Refund of Special Additional Duty under Notification No. 102/2007-Cus. is available where the importer proves sale of the imported goods in the domestic tariff area and payment of VAT or sales tax. The document states that substantial compliance may suffice when original challans are unavailable, provided a bank-attested photocopy and other supporting material establish duty payment, and that absence of stamped invoices is not fatal on the facts described. It also states that limitation is computed from the date of duty payment, and later deficiency intimations do not change the filing date for refund purposes. The refund was treated as admissible in principle, subject to verification of documents and compliance with the prescribed conditions.

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Issues: Whether refund of Special Additional Duty under Notification No. 102/2007-Cus. was admissible despite production of a photocopy of the duty-paid challan and absence of stamped invoices, and whether the refund claim was filed within the prescribed time.

Analysis: The refund of SAD paid in lieu of VAT/sales tax is available when the importer proves sale of the imported goods in the domestic tariff area and payment of VAT/sales tax. The requirement of original challan and stamped invoices was treated as capable of being satisfied on the facts of the case by the documents produced, particularly where the original TR-6 challan was stated to have been lost and a bank-attested photocopy was available. The claim was also found to have been filed within one year from the date of payment of duty, and later deficiency intimations did not alter the date of filing for limitation purposes.

Conclusion: The refund claim was held admissible in principle, subject to submission of the stated documents and an indemnity bond, with the original authority directed to verify the facts and sanction the refund.

Final Conclusion: The appellant succeeded on the substantive entitlement to SAD refund, but the matter was sent back for verification and completion of documentary requirements before sanction.

Ratio Decidendi: Refund of SAD under the notification cannot be denied on hypertechnical grounds where the importer establishes payment of VAT/sales tax and otherwise substantially complies with the notification conditions within time.

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