Case Law Details
S. Vaidya and Company Vs Commissioner of Customs (CESTAT Chennai)
Brief facts of the case are that the appellant filed three refund claims for refund of SAD amount of Rs.10,97,996/-. After scrutinizing the documents, the adjudicating authority observed that the sales invoices were not endorsed with the mandatory declaration that “no cenvat credit can be availed on the invoices”. The refund was rejected against which the appellant filed appeal before the Commissioner (Appeals). As per the impugned order, the Commissioner (Appeals) upheld the order passed by the adjudicating authority and also observed that the Chartered Accountant certificate cannot be relied to conclude that the appellant has not passed on the duty by issuing the sales invoices. Hence this appeal.
The issue to be decided is whether refund can be granted as per the benefit of Notification No.102/2007-Cus. Dated 14.09.2007, if condition 2(b) of the notification has not been complied by a trader who cleared the goods on the strength of commercial invoices. The said issue has been decided by the Larger Bench in the case of Chowgule & Company (supra) wherein it was held as under :
“5.4 In view of the factual and legal analysis as above, we answer the reference made to us as follows. A trader-importer, who paid SAD on the imported goods and who discharged VAT/ST liability on subsequent sale, and who issued commercial invoices without indicating any details of the duty paid, would be entitled to the benefit of exemption under Notification No. 102/2007-Cus., notwithstanding the fact that he made no endorsement that “credit of duty is not admissible” on the commercial invoices, subject to the satisfaction of the other conditions stipulated therein. The above decision is rendered only in the facts of the case before us and shall not be interpreted to mean that conditions of an exemption notification are not required to be fulfilled for availing the exemption.”
CESTAT are of the considered opinion that the rejection of refund is without legal basis.
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