Benefit of exemption notification no. 102/2007 not deniable alleging imported goods were sawn and sold in DTA

Shyam Timber Pvt Ltd Vs C.C.-Kandla (CESTAT Ahmedbad)

CESTAT Ahmedabad held that the benefit of exemption Notification No. 102/2007 cannot be denied merely because the imported goods were of logs whereas the same were sawn and sold in DTA.

Facts- The appellants had filed refund claims of additional duty of customs which were sanctioned to the appellant vide various Orders-In-Original.

Based on the information gathered that Appellant had claimed refund of 4% SAD that had been paid at time of import of timber incorrectly by submitting sale invoice of timber imported under some other Bill of Entry, a search was carried out at the business premises of the appellants by the DGCEI. On the basis of the DGCEI’s investigation report, show cause notices were issued to the Appellants.

In adjudicating, the adjudicating authorities took the view that the appellants have submitted forged documents with the customs authority with a view to get the refund fraudulently. They did not declare the factual position and suppressed the material facts i.e. clearance of different timber which did not pertain to the Bill of Entry for which they claimed refunds, preparation of forged invoices etc.

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