SACD refund is admissible, even if appropriate Sales Tax/VAT was less than SACD or Nil

CA K. Jitendra Babu 1. Customs Notification 102/97 Dt.14.09.2007 permitted importers to claim refund of Special Additional Customs Duty (SACD) paid on the imported goods, provided such imported goods are sold in the domestic market on payment of VAT/Sales Tax. 2. In case of some of the imported materials, rate of VAT applicable on sale in domestic market as per VAT Act of the concerned State is lower than the SACD rate. Further, in some of the cases, the rate of VAT applicable on some of the imported material is Nil. 3. Customs department has been rejecting the refund claims of the importers...