Special Additional Duty refund accepted where imported fittings were sold in apartments under a composite VAT scheme.

Refund of Special Additional Duty under Notification No. 102/2007-Cus. was treated as admissible where imported sanitary fittings were incorporated into apartments sold under a composite VAT scheme. The absence of separate sale invoices and invoice endorsements for non-availment of CENVAT credit was not regarded as fatal because the fittings formed part of the agreement value on which VAT was paid, and a Chartered Accountant's certificate was produced in line with Board Circular No. 6/2008-Cus. The refund conditions were considered satisfied to the extent practicable, and rejection solely because the transaction fell under a composite VAT regime was set aside.

---

---

Issues: Whether refund of Special Additional Duty under Notification No. 102/2007-Cus. was admissible when the imported sanitary fittings were sold as part of apartments under a VAT composite scheme and sale invoices were not issued.

Analysis: The imported sanitary fittings were incorporated in apartments sold to buyers, and the value of such fittings formed part of the agreement value on which VAT was paid under the composite scheme. In that statutory setting, invoices were not issued by the assessee, and the absence of invoice endorsements regarding non-availment of CENVAT credit could not be treated as fatal. The Board's Circular No. 6/2008-Cus. also permitted correlation through a Chartered Accountant's certificate, which was furnished. The refund conditions were therefore complied with to the extent practicable, and rejection merely because of the composite VAT regime would unfairly deprive the assessee of the notification benefit.

Conclusion: The refund claim was held admissible and the rejection was set aside in favour of the assessee.

---