2017 (5) TMI 1371

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....015-DB, C/20436/2015-DB, C/20437/2015-DB, C/20438/2015-DB, C/20440/2015-DB, C/20441/2015-DB, C/20443/2015-DB, C/20444/2015-DB, C/20445/2015-DB, C/20446/2015-DB, C/21513/2016-DB, C/21574/2016-DB, C/21761/2016-DB C/Early Hearing/21471/2015 in C/20204/2016-DB, C/20205/2016-DB, C/20206/2016-DB, C/20207/2016-DB, C/20248/2016-DB, C/20435/2015-DB, C/20436/2015-DB, C/20437/2015-DB, C/20438/2015-DB, C/20440/2015-DB, C/20441/2015-DB, C/20443/2015-DB, C/20444/2015-DB, C/20445/2015-DB, C/20446/2015-DB, C/21513/2016-DB, C/21574/2016-DB, C/21761/2016-DB C/20204/2016-DB, C/20205/2016-DB, C/20206/2016-DB, C/20207/2016-DB, C/20248/2016-DB, C/20435/2015-DB, C/20436/2015-DB, C/20437/2015-DB, C/20438/2015-DB, C/20440/2015-DB, C/20441/2015-DB, C/20443/2015-DB, ....

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....vailable to the appellant. They also relied upon the decision of the Tribunal in the case of Gazal Overseas Vs. CC, New Delhi [2016(332) ELT 767 (Tri. Del.)]. 4. The appellant imported certain goods and paid SAD at the rate of 4% in terms of Customs Notification no. 19/2006 dated 01.03.2006. However, at the time supply of these goods to their customers, even though tax invoice was issued, no VAT was charged on these supplies in terms of notification dated 06.10.2010 issued by Kerala State Government exempting the goods from payment of VAT. The dispute is whether in such circumstances, the appellant will be eligible for payment of refund of SAD, by considering the NIL rate of VAT as appropriate payment of VAT. 5. We find that an identi....

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....nd amount in such a situation and the entire 4% CVD, if otherwise found eligible, shall be refunded". It is evident from the above clarification of C.B.E. & C. that even if VAT/Sales tax was less than 4%, the appellant was entitled to refund of SAD which was 4% so long as VAT/sales tax was paid. In other words, so long as appropriate VAT/Sales tax was paid, SAD refund was admissible even if the appropriate sales tax/VAT was less than SAD; if the sales tax/VAT was NIL, so be it. In other words what is required in terms of the said notification is payment of appropriate sales tax/VAT regardless of the rate thereof. It logically follows that if the appropriate rate of sales tax/VAT was NIL then the appropriate sales tax/VAT paid will ....