TaxTMI 
TaxTMI 
2024 (10) TMI 733
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.... that the sale is made by stockist on behalf of the importer. As per the Circular No.16/2008 dated 13.10.2008 and the statement filed by the appellant, it did not contain details about VAT reference number against sales invoice numbers. Thus, non-submissions of mandatory documents to substantiate the eligibility of the refund claims led to the rejection of all the claims. Aggrieved by these orders, the present appeals are being filed. 3. The learned counsel admits that the imported consignment was sold through the consignment agents/stockists and in support of it, a certificate is issued by the company statutory auditor and the sale was affected by the stockist and appropriate VAT was paid by them. It is further stated that a statement containing details of importer, sales and payment of appropriate VAT on the imported goods was also submitted. As per the Circular No.16/2008, the endorsement on the invoices was only a procedural requirement which may be condoned on the strength of other substantive evidences. It is also submitted that the agreement between the importer and the consignment agent and statutory auditor certificate showing the transfer of stock to the stockist are the....
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....all be given effect if the following conditions are fulfilled : (a) the importer of the said goods shall pay all duties, including the said additional duty of customs leviable thereon, as applicable, at the time of importation of the goods; (b) the importer, while issuing the invoice for sale of the said goods, shall specifically indicate in the invoice that in respect of the goods covered therein, no credit of the additional duty of customs levied under sub-section (5) of section 3 of the Customs Tariff Act, 1975 shall be admissible; (c) the importer shall file a claim for refund of the said additional duty of customs paid on the imported goods with the jurisdictional customs officer; (d) the importer shall pay on sale of the said goods, appropriate sales tax or value added tax, as the case may be; (e) the importer shall, inter alia, provide copies of the following documents along with the refund claim: (i) document evidencing payment of the said additional duty; (ii) invoices of sale of the imported goods in respect of which refund of the said additional duty is claimed; (iii) documents evidencing payment of appropriate sales tax or value added tax, as the case ma....
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.... be a sale, by such agent. Further, consignment agent/stockist who has the authority to sell the goods belonging to the importer/principal on their behalf is also included in the scope of the term 'dealer' under the ST/VAT Act, and the said agent/stockist are required to pay appropriate ST/VAT on sale of such goods. In these transactions, normally, an Agreement is entered into between the importer and agent, which provides for the terms and conditions of sale and offers a commission for the work done by the agent/stockist. Payment of ST/VAT on behalf of the importer may also be specified as one of the arrangement as per such agreement. Since such sale is an accepted form of commercial transaction, payment of ST/VAT made by such agents and submission of ST/VAT challan by the agents on behalf of principal (Importer) is permitted by ST/VAT authorities. In view of the above, it is clarified that in case of sale of imported goods by importer through consignment agent/stockist, refund of 4% CVD shall be granted by Customs field formations, subject to the condition that the Consignment agent/stockist has been authorised to sell the imported goods in terms of the agreement entered into....
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....ghtly rejected the refund claims in the absence of necessary proof to show that the imported goods were cleared by the consignment agent and VAT was paid by them on behalf of the importer. Moreover, though they produced the Chartered Accountant certificate in one of the appeals and there is no such certificate on record for the second appeal. 7. The decision relied upon by the appellant is not relevant because in that case enough evidence was produced by the appellant to prove that the goods were sold by the stockist on behalf of the importer. The order reads as follows 'I find that the entire agreement between the appellant and consignment agent an entire sale made in consignment agent capacity. I observed that sale Patti of the appellant where it was clearly mentioned that the sale is an account of Arushi Exports, this shows that sale made by the consignment agent is not on his own account, but it is consignment sale on account of appellant. It is also observed that from the Ledger copy produced by the learned counsel that all the 4 sale Patti against which the refund was rejected were duly accounted in the books of account of the appellant towards consignment sale. On the basis....