2016 (7) TMI 1196

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....with the requirements in terms of Notification No. 102/2007- Cus dated 14.09.2007. 2. The appellant has been represented by learned advocate Shri Chidanand, Urs B.G. who inter alia submitted as follows:- i. Invoice issued was commercial invoice with the statutory presumption that SAD is not available as credit. Basic intention of the Exemption Notification No. 102/07 is to give refund for the goods which have suffered local taxes i.e. VAT, when the goods were imported by paying 4% SAD. By not granting refund in such cases would doubly tax the transaction. The impugned order denying the exemption is not sustainable. The self-declaration to the effect that burden of 4% SAD had not been passed on to the buyer by the importer and th....

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.... import goods suffered wherever said goods are sold further in local market charging VAT/sales tax payable to respective State authorities. This has been explained well by CESTAT larger Bench decision in case of  Chowgule & Co. Pvt Ltd Vs CC & CCE [2014 (306)ELT 326(Tri-LB)]. In order to make the issue clear the observations of the CESTAT larger bench in para 5.1 of its decision are given below: "5.1 It would be useful and appropriate at this juncture to understand the genesis of the levy of Special Additional Duty of Customs (SAD). While moving the proposal for this levy in the Finance Bill, 1998, the Hon'ble Finance Minister of India stated as follows in his Budget Speech : "I am persuaded about a clear disability t....

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....d from levy of SAD vide Sl. No. 11 of the Table Annexed to Notification No. 29/1998-Cus., dated 2-6-1998. The said exemption underwent many changes over the years and the present exemption is contained in Notification 102/2007-Cus. wherein the exemption is operationalised through a refund mechanism (emphasis supplied. Notwithstanding these changes, the object of the levy was to counterbalance the levy of local taxes on domestically produced goods on imported goods so that there is a level playing field between the two. However, when the imported goods are subsequently sold in the domestic market bearing the burden of local taxes, exemption is provided from SAD so as to neutralize the impact of double levy. This object and purpose of the lev....