Special Additional Duty refund requires proof that imported goods were sold domestically with proper documentary co-relation.

Refund of Special Additional Duty under Notification No. 102/2007-Customs is available only when the importer satisfies the notification conditions and proves that the imported goods were actually sold in the domestic market after payment of VAT. The co-relation between import documents and sale invoices is a substantive requirement, not a mere procedural formality. Where the documents do not satisfactorily match and the required linkage remains unproved, the refund claim fails. On those discrepancies, the disputed SAD refund was held inadmissible and the denial of refund was upheld.

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Issues: Whether refund of Special Additional Duty under Notification No. 102/2007-Customs dated 14.09.2007 was admissible when the documents did not satisfactorily establish co-relation between the imported goods and the goods sold in the domestic market.

Analysis: Refund of Special Additional Duty is a substantive benefit, but it is available only when the importer satisfies the conditions of the notification and establishes that the imported goods were actually sold in the domestic market after payment of VAT. The co-relation between the imported goods and the goods reflected in the sale invoices is not a mere procedural formality. Where the invoices and import documents do not match, the claim cannot be accepted as the required linkage remains unproved. The earlier refund allowance for a limited amount did not alter the fact that the disputed balance claim failed on the stated discrepancies.

Conclusion: The refund claim was not admissible for the disputed amount and the denial of SAD refund was upheld.

Final Conclusion: The appeal failed because the essential documentary linkage required for SAD refund was not established.

Ratio Decidendi: Refund of Special Additional Duty under the notification is contingent on proof of actual sale of the very imported goods in the domestic market, and failure to establish that co-relation disentitles the claimant to refund.

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