SAD REFUND

[kailash dixit]

SIR,

OUR BILL OF ENTRY WAS MADE ON 11.04.2012 AND RELATED CUSTOM DUTY IS PAID ON 02.05.2012.

AND THE CORRESPONDING SALES INVOICE DATED AT 05.04.2012.

Department says it is not possible that sales made before realise goods from the port.

can you suggest me whether there is only possiblity to claim refund.

[YAGAY andSUN]

The contentions raised by the Department are right.  If the material had not been cleared from the port then how can it be sold.

The benefit of notification no. 102/2007 dated 14.09.2012 will not be available to you.  Please check the material facts again if there is any clerical mistake in this whole transaction.

AI Summary

Sale Before Customs Clearance may preclude entitlement to SAD refund; verify transactional records and clerical accuracy promptly. The department denied entitlement to a SAD refund because the sales invoice predates customs clearance and duty payment, asserting goods cannot be sold before port clearance; the taxpayer should verify invoices, bill of entry dates and payment records for clerical errors that might reconcile the sequence and preserve notification benefits.