2014 (3) TMI 560

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.... period of 18 months, the appellant opted to exit from EPCG scheme and option was availed. Accordingly re-assessment of Bills of Entry were made. On reassessment of Bills of Entry, the customs duty along with 4% SAD was paid by the appellant. The said capital goods were cleared by the appellant within a period of one year on payment of sales tax/VAT. After clearance of the said goods, the appellant filed a refund claim of 4% SAD paid by them under Notification No. 102/2007-Cus., dated 14-9-2007. The said refund claim was rejected by the adjudicating authority on the ground that the appellant has failed to fulfil the condition of Notification No. 102/2007-Cus. On appeal before the Commissioner (Appeals) by the appellant, the order of rejecti....

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.... Commissioner of Customs, Kandla - 2012 (285) E.L.T. 410 (Tri.-Ahm.) and Vijirom Chem. Pvt. Ltd. v. Commissioner of Customs, Bangalore - 2006 (199) E.L.T. 751 (Tri.-Bang.). 5. On the other hand, Shri K.S. Mishra, learned A.R. appearing for the Revenue submits that as per the condition of Notification No. 102/2007, the benefit is available to the traders for subsequent sale of the imported goods and duty paid at the time of importation of the goods. Admittedly, in this case the goods are initially used by the appellant and not procured for subsequent sale. Moreover, duty was not paid at the time of importation of the goods. Therefore, the appellant is not entitled for the benefit of Notification No. 102/2007. He further relied on the B....

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....g regard to the sales, value added tax, local tax and other taxes or charges leviable on sale or purchase or transportation of like goods in India, when imported into India shall be liable to an additional duty of customs @ 4% ad valorem." 7.1 From plain reading of the provisions, we find that the SAD is payable on the imported goods for compensation of VAT/sales tax/local tax or any other taxes or charges leviable on like goods which implicit that the importer who imports the goods into India and keeps the goods with him is required to pay SAD @ 4% as per the Section 3(5) of the Customs Tariff Act, 1975 but as per Notification No. 102/2007 if the goods which suffered SAD and sold by the importer into domestic market on payment of VAT....