Roots Multiclean Ltd. Vs Commissioner of Customs (CESTAT Chennai)
CESTAT Chennai held that the mismatch in the SAD vs VAT / CST paid caused by different rates at which the tax is paid cannot be held against the refund applicant. Further, reasons for disbelieving the CA’s certificate also not clearly spelt out. Accordingly, rejection of refund claim unsustainable.
Facts- The appellant filed two refund claims for refund of 4% SAD levied under Sec. 3(5) of Customs Tariff Act, 1975 for their import of ‘Industrial Vacuum Cleaner and its spares’ in terms of Notification No. 102/2007 dated 14.9.,2007 as amended along with relevant documents. The appellant submitted all relevant documents as proof that the necessary duties including 4% SAD was paid and that the goods were cleared for home consumption.
After due process of law, the lower authority rejected the refund claims on the ground that there is mismatch between the description of goods in the bills of entry and sales invoice and that the CST/VAT discharged were less than the SAD paid. In appeal, Commissioner (Appeals) rejected the appeal and upheld the Order in Original.
Conclusion- Held that the appellant has produced a Chartered Accountant’s Certificate along with the reconciliation statement as required by Boards Circular No. 6/2008, dated 28-4-2008. In such a case the decision to discard the certificate should be based on certain incriminating and reliable documents and the reasons for disbelieving the certificate should be clearly spelt out. In the absence of such action the claim cannot be rejected.
