Varian Medical Systems International (India) Pvt. Ltd. Vs Commissioner of Customs (CESTAT Mumbai)
In a ruling by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai, Varian Medical Systems International (India) Pvt. Ltd. has successfully challenged the denial of a Special Additional Duty (SAD) refund. The tribunal set aside earlier orders and directed the customs authorities to process a refund claim amounting to Rs. 2,87,801.
The case centered on SAD paid on goods imported through three Bills of Entry in April, May, and June 2017. Varian Medical Systems subsequently applied for a refund of the SAD paid, a common provision when imported goods are sold after payment of local taxes like VAT.
However, the initial refund application was rejected by the original adjudicating authority in July 2020. The primary reason cited for the rejection was that the duty, for which the refund was sought, had been paid by the courier service, DHL, and there was allegedly no sufficient evidence to prove that the incidence of this duty was ultimately borne by the importer, Varian Medical Systems.
Varian Medical Systems appealed this decision before the Commissioner (Appeals). The appellate authority, in December 2021, upheld the original order, reiterating the same grounds for rejecting the refund claim – lack of proof that the importer had borne the duty incidence.
