Special Additional Duty refund limitation runs from sale of goods, not customs duty payment, making the claim timely.

Refund of Special Additional Duty was held to be contingent on sale of the goods and proof of VAT or sales tax payment, so the limitation period for claiming refund ran from the date of sale rather than the date of customs duty payment. Applying the Delhi High Court view and declining the contrary Bombay High Court approach, the claim filed within one year of sale was not time-barred and rejection on limitation was incorrect.

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Issues: Whether the refund claim for 4% Special Additional Duty was barred by limitation when filed within one year from the date of sale of the goods and payment of VAT or Sales Tax, instead of within one year from the date of payment of customs duty.

Analysis: The refund of Special Additional Duty is contingent upon production of sale invoices and proof of payment of VAT or Sales Tax. If the goods have not been sold, the refund claim cannot effectively be made. In view of this scheme, the period of one year for making the refund claim was held to run from the date of sale of the goods and not from the date of payment of duty. The view taken by the Delhi High Court on this issue was followed, and the contrary view of the Bombay High Court was not accepted in the face of the consistent line of authority affirmed by the Supreme Court.

Conclusion: The refund claim was not time-barred and the rejection on limitation was incorrect.

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