Tribunal Allows Appeal Over Refund Claim for Imported Goods Without Specific Invoice Clause

The Tribunal allowed the appeal, setting aside the rejection of the refund claim for Special Additional Duty on imported goods. It held that the absence of a specific clause in the sale invoice regarding the inadmissibility of credit of additional duty of customs did not justify the rejection. The Tribunal relied on precedent cases to interpret the relevant notification, emphasizing that the procedural requirement could be fulfilled without explicitly mentioning the duty element in the invoice. Consequently, the appellant's appeal was allowed with any necessary relief under the law.

---

---

Issues:
1. Refund claim rejection based on the absence of specific indication in the sale invoice regarding the admissibility of additional duty of customs.
2. Interpretation of condition 2(b) of Notification No.102/2007-Cus regarding the requirement for the importer to mention the inadmissibility of credit of additional duty of customs in the sale invoice.

Analysis:

Issue 1: Refund claim rejection
The appellant, engaged in trading and assembly of Wind Operated Electricity Generator (WOEG), imported goods with 4% Special Additional Duty (SAD) paid under Section 3(5) of the Customs Tariff Act, 1975. The refund claim for SAD on the imported goods was rejected due to the absence of a specific clause in the sale invoice stating that no credit of additional duty of customs shall be admissible. The Commissioner (Appeals) upheld the rejection, leading to the current appeal.

Issue 2: Interpretation of Notification No.102/2007-Cus
The key issue for appellate decision was whether the appellant complied with condition 2(b) of Notification No.102/2007-Cus, which necessitates the importer to indicate in the invoices that no credit of additional duty of customs will be admissible. The Tribunal referred to a precedent, Chowgule & Company Pvt. Ltd Vs. CCE, where it was held that the endorsement requirement is procedural, and the objective could be met even without specifying the duty element in the invoice. This interpretation has been consistently followed in various Tribunal decisions, including Equinox Solution Ltd Vs. CC, Nova Nordisk India Pvt. Ltd. Vs. CC, Vijay Steel Industries Vs. CC, Sri Sai Graphics Vs. CCE, and Narasingh Dass & Co. (P) Ltd. The appellant's representative reiterated the appeal grounds, while the department supported the impugned order.

In conclusion, the Tribunal, in line with the precedents, found that the rejection of the refund claim based on the absence of a specific clause in the sale invoice was not justified. The impugned order was set aside, and the appeal was allowed with any consequential relief as per law.

---