SAD refund denial failed where invoice endorsement was treated as non-mandatory and supporting records were produced.

Refund of Special Additional Duty under Notification No. 102/2007-Cus. could not be denied merely for alleged non-fulfilment of the endorsement condition in paragraph 2(b). The assessee produced a Chartered Accountant's certificate showing that the required endorsement had been made on the sales invoices, and the Tribunal applied the Larger Bench ruling in Chowgule & Company Pvt. Ltd., which treated the endorsement requirement as not mandatory. On that basis, the rejection of the refund claim was unsustainable, and the assessee was held entitled to refund with consequential relief.

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Issues: Whether refund of Special Additional Duty could be denied for non-fulfilment of the endorsement condition in paragraph 2(b) of Notification No. 102/2007-Cus. dated 14.9.2007.

Analysis: The appellant produced a Chartered Accountant's certificate evidencing that the necessary endorsement had been made on the sales invoices. The Tribunal relied on the Larger Bench ruling in Chowgule & Company Pvt. Ltd., which held that the endorsement requirement is not mandatory. In view of that binding position and the materials on record, the rejection of refund could not be sustained.

Conclusion: The denial of refund was unjustified and the assessee was entitled to the refund claim with consequential relief.

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