SAD refund on imported goods remains admissible when domestic sale is made and appropriate VAT is paid.

Refund of special additional duty on imported set top boxes was treated as admissible where the goods were subsequently sold in the domestic market, VAT was paid on the invoice value, and the sale description differed from the import description. The Tribunal relied on its earlier decision in the same assessee's case and on Circular No. 6/2008-Cus, which clarifies that Notification No. 102/2007-Cus does not require VAT or sales tax to match or exceed the SAD rate. It accepted that the packing list showed inclusion of set top boxes and held that a lower resale price than the import RSP was not a valid ground to deny refund.

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Issues: Whether refund of special additional duty paid on imported set top boxes under Notification No. 102/2007-Cus dated 14.09.2007 was admissible when the goods were sold in the domestic market as part of antenna systems and accessories and VAT was paid on the invoice value.

Analysis: The Tribunal noted that the same dispute in the appellant's own case for an earlier period had already been decided in its favour. Following that earlier decision, it accepted that the imported set top boxes had in fact been sold, the description in the sale invoices was not ative when the packing list showed inclusion of set top boxes, and the department had no basis to deny refund merely because the resale price was lower than the import RSP. It further relied on the clarification in Circular No. 6/2008-Cus that the notification does not require VAT or sales tax to be equal to or higher than the SAD rate, only that appropriate VAT be paid on sale.

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

Ratio Decidendi: Under Notification No. 102/2007-Cus, refund of SAD cannot be denied where imported goods are subsequently sold as such and appropriate VAT is paid on the sale value, merely because the resale price is lower than the import RSP or the sale description differs from the import description.

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