SAD refund under Notification 102/2007-Cus survives missing invoice endorsement where domestic resale and VAT/CST payment are proved.

Refund of Special Additional Duty of Customs under Notification No. 102/2007-Cus is available when imported goods are subsequently sold in India and the sale invoices evidence payment of VAT or CST, as the mechanism is intended to neutralise double taxation and maintain parity with indigenous goods. A missing endorsement on the commercial invoice that no credit of the additional duty would be admissible does not by itself defeat the claim where the record otherwise shows domestic resale and establishes that the duty incidence was not passed on. The substantive conditions for refund prevail over the procedural omission in documentation.

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Issues: Whether refund of Special Additional Duty of Customs was admissible when the imported goods were subsequently sold in the domestic market on commercial invoices showing payment of VAT/CST, notwithstanding the absence of the invoice endorsement that no credit of the additional duty would be admissible.

Analysis: The imported goods were established to have been sold further in the local market and the sale invoices showed payment of VAT/CST. Notification No. 102/2007-Cus provides a refund mechanism for Special Additional Duty paid at import where the goods are later sold in India and suffer local sales tax. The object of the levy and the exemption is to neutralize double taxation and maintain parity between imported and indigenous goods. Where the factual record conclusively shows subsequent sale and payment of local taxes, a missing endorsement on the sale invoice does not defeat the refund claim, particularly when the invoices are commercial invoices and the evidence otherwise establishes that credit of the additional duty was not passed on.

Conclusion: The refund claim was admissible and could not be denied merely for want of the prescribed endorsement on the invoices. The appeal was decided in favour of the assessee and the refund with consequential relief was allowed.

Ratio Decidendi: A procedural omission in the refund documentation does not bar refund of Special Additional Duty under Notification No. 102/2007-Cus where the evidence conclusively shows subsequent domestic sale of the imported goods and payment of VAT or CST, thereby satisfying the substantive conditions and preventing double taxation.

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