Special Additional Duty refund remains available when VAT is paid and notification conditions are otherwise met.

Refund of Special Additional Duty was admissible where the importer sold the imported goods on payment of VAT and otherwise satisfied the conditions of the refund notification. The notification required only compliance with its stipulated terms, and no legal basis was shown to deny refund merely because the goods were later sold rather than used in manufacture. Any alleged breach of the actual user condition under the foreign trade policy had to be pursued separately under that policy; it could not be used to withhold refund under the notification. The Revenue's objection therefore failed.

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Issues: Whether refund of Special Additional Duty was admissible when the imported goods were sold on payment of VAT despite being imported under an actual user condition.

Analysis: The refund notification permitted repayment of Special Additional Duty if its stipulated conditions were satisfied. The importer had sold the goods on payment of VAT and had fulfilled the other requirements of the notification. No legal provision was shown to deny refund merely because the goods were later sold instead of being used in manufacture. If the Revenue considered the actual user condition under the foreign trade policy to have been breached, its remedy lay in taking action for that alleged violation, not in denying refund under the notification.

Conclusion: Refund was admissible and the Revenue's objection failed.

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