Refund notification interpretation favours the assessee where two reasonable constructions exist, defeating a time-bar rejection.

Interpretation of the SAD refund notification under Notification No. 102/2007-Cus was central, with the dispute also covering whether the refund claim could be rejected as time-barred. The text states that the refund condition was capable of more than one reasonable construction, so the interpretation favourable to the assessee was applied. On that basis, denial of the refund on limitation grounds was found unsustainable, and the SAD refund was allowed.

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Issues: Whether the appellant was entitled to refund of Special Additional Duty under Notification No. 102/2007-Cus dated 14/09/2007 and whether the refund could be denied as time-barred.

Analysis: The dispute turned on the interpretation of the refund notification and the effect of the limitation condition sought to be applied. The order held that the appellant's claim was supported by the settled position on interpretation of taxing provisions, and that where two reasonable constructions are possible, the construction favourable to the assessee must be adopted. On that basis, the denial of refund as time-barred was found unsustainable.

Conclusion: The appellant was held entitled to the SAD refund, and the rejection of the claim as time-barred was set aside.

Ratio Decidendi: Where a taxing provision or refund condition is capable of two reasonable interpretations, the interpretation favouring the assessee must be preferred.

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