2018 (11) TMI 192

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....r Nos. 06/2008 dated 28.04.2008, 16/2008 dated 13.10.2008 and 18/2010 dated 08.07.2010. After due process of law, the lower adjudicating authority vide Order-in-Original 54654/2017 dated 04.04.2017 sanctioned the refund of Rs. 14,77,767/- as claimed by the appellants. 2. Thereafter, the Commissioner of Customs, Chennai-IV vide Review Order dated 25.09.2017 directed the lower adjudicating authority to file an appeal before the Commissioner of Customs (Appeals-II), Chennai with a prayer to modify the above Order-in-Original and order for recovery of the erroneously paid refund of Rs. 1,60,428/- sanctioned against Bill of Entry No. 3933967 dated 18.01.2016. On appeal, the Commissioner (Appeals) vide impugned Order-in-Appeal Sea C.Cus II No.....

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.....102/2007, an importer is entitled for refund of SAD that was levied at the time of import after he files necessary documents to prove that proper Sales Tax or VAT as the case may be, has been paid. As settled by various higher judicial forums, the purpose of imposing SAD is to protect and ensure collection of appropriate sales tax or VAT that is payable on imported goods, which is paid upfront at the time of imports. SAD is not credited and set off from the sales tax or VAT, which is refundable to an importer after ascertaining the appellant to appropriate Sales Tax / VAT. I note that Hon'ble Delhi High Court in the case of Gulati Sales Corporation 2017 (supra) has considered both Notifications Nos.102/2007 and 93/2008; and also considered....

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....and set off from the sales tax and value added tax, which are State taxes. SAD is, therefore, refundable to the importer after evidence with regard to payment of appropriate sales tax or value added tax is produced. The documents and papers have to be produced before the custom authorities, checked and verified, before refund is issued. It goes without saying that the intent is that no double duty/tax - first, in the form of SAD and secondly, in form of sales tax or value added tax, is to be paid. 10. Circular dated 28^th April, 2008 quoted above specifically states the view and understanding of the Revenue that Section 27 of the Act is not made applicable to the Notification No.102/2007 and the time limit prescribed under the said....