SAD refund under Notification No. 102/2007-Cus denied where imported rice bran was processed into separate commercial products.

SAD refund under Notification No. 102/2007-Cus was denied because the imported rice bran was not sold as such after import. Instead, it was processed into rice bran oil and de-oiled bran, which were separately sold as distinct commercial goods with different identities and prices. The sale invoices referred to de-oiled bran, confirming that the goods sold were not the same as the goods imported. As the notification is an exemption provision and must be strictly construed, the condition requiring subsequent sale of the imported goods was not met, so the refund claim was inadmissible.

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Issues: Whether SAD refund under Notification No.102/2007-CUS was admissible when imported rice bran was processed to extract rice bran oil and the de-oiled bran was sold separately.

Analysis: The notification grants refund only when the imported goods are sold after import on payment of appropriate VAT or sales tax and the conditions in the notification are satisfied. Here, the imported rice bran was not sold as such. It was processed into two distinct commodities, namely rice bran oil and de-oiled bran, which were separately sold and carried different commercial identities and prices. The sale invoices themselves described the goods as de-oiled bran, showing that the goods sold were not the same as the goods imported. The notification being an exemption provision, it had to be strictly construed, and the requirement of sale of the imported goods was not met.

Conclusion: The claim for SAD refund was not admissible and the appeals failed.

Ratio Decidendi: Refund under Notification No.102/2007-CUS is available only where the imported goods are sold as such after import; if the imported goods are processed into distinct commodities and only the processed products are sold, the condition of subsequent sale of the imported goods is not satisfied.

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