2025 (5) TMI 1038 - AT - Customs

Customs Duty Refund Claim Validated: Appellant Succeeds in Proving Direct Duty Payment Through TR-6 Challans Review

CESTAT Mumbai allowed appellant's SAD refund claim of Rs. 2,87,801/- after reviewing TR-6 challans proving duty payment. The tribunal reversed prior ... Entitlement for refund claim of Special Additional Duty (SAD) - import goods - no evidence that duty paid on account - goods sold in the market and the same goods suffered levy of VAT - HELD THAT:- A sample copy of TR-6 challan was submitted by learned counsel for the appellant where it is stated to have been issued in the name of the present importer. The appeal paper book is having copies of such TR-6 challans at page No.12, 16, 21 and 25 of the appeal paper book which indicate that the customs duty including SAD was paid by the appellant. The only contention on the basis of which refund was rejected is that the appellant has not established that the appellant had borne the incidence of customs duty. With the said copies of TR-6 challans, it is established that the appellant had borne the burden of SAD. Therefore, set aside the impugned order and direct the original authority to pay the refund of SAD of Rs.2,87,801/-. Appeal is allowed. The Appellate Tribunal (CESTAT Mumbai) allowed the appellant's refund claim of Special Additional Duty (SAD) amounting to Rs. 2,87,801/-, reversing prior rejections by the original authority and Commissioner (Appeals). The original denial was based on the ground that the duty was paid by DHL and not the appellant. The appellant demonstrated entitlement by submitting TR-6 challans bearing the importer's name (M/s. VMS International Pvt. Ltd.), establishing that the customs duty, including SAD, was indeed paid by the appellant. The Tribunal held that 'with the said copies of TR-6 challans, it is established that the appellant had borne the burden of SAD,' and accordingly directed the refund payment. The appeal was allowed on this basis.