Special Additional Duty refund depends on VAT being paid on the same imported goods, not a distinct downstream product.

Refund of Special Additional Duty under the customs notification was denied because the VAT was paid on proflex roof, treated as a distinct commercial product, rather than on the imported coil sheets themselves. The notification's condition requires VAT payment on the same imported goods as sold, so the identity of the imported article had to continue through the sale. Earlier decisions cited by the assessee were distinguished on facts because they did not show that the imported goods retained the same identity in the later sale transaction. The result was that the refund condition was not satisfied.

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Issues: Whether the appellant was entitled to refund of Special Additional Duty under Notification No.102/2007-Cus dated 14.9.2007 when the imported coil sheets were later sold as proflex roof and VAT was paid on the latter product.

Analysis: The imported goods were coil sheets on which Special Additional Duty had been paid. The goods subsequently sold were proflex roof, which was treated as a distinct commercial product and was the item on which VAT was paid. Since the notification requires VAT to be paid on the same imported goods, the condition for refund was not satisfied. Earlier decisions cited by the appellant were found inapplicable on their facts because the identity of the imported goods was not shown to have continued in the same form.

Conclusion: The appellant was not entitled to refund of Special Additional Duty under Notification No.102/2007-Cus dated 14.9.2007.

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