CA Bimal Jain
Sanctioning of 4% of SAD refunds by way of re-credit in the respective licenses after June 30, 2013 is proper – A right given under an Exemption Notification cannot be taken away by issue of the Departmental Circulars
M.B. Enterprise (the Respondent) had filed refund of SAD in terms of the Notification No. 102/2007-Cus dated September 14, 2007 (SAD Notification) before June 30, 2013. The Refund of SAD was sanctioned by way of credit notes in the DEPB License/Scrip of the importers prior to September 30, 2013. Further, utilisation of re-credited amounts was permitted by the Board Circulars till June 30, 2013 which was further extended up to September 30, 2013.It was also directed that all applications of 4% SAD paid through DEPB/reward script should be disposed of by officers by June 30, 2013.
The Department argued that after September 30, 2013, SAD liability cannot be discharged out of re-credited DEPB scrips.
The Hon’ble CESTAT, Ahmedabad held that in the instant case, the re-credit was sanctioned by the Adjudicating Authority prior to September 30, 2013. Further, there is no condition in the SAD Notification that SAD duty should be initially paid through cash. Furthermore, a right given under an exemption notification cannot be taken away by the issue of Departmental Circulars. Thus, sanctioning of 4% of SAD refunds by way of re-credit in the respective licenses after June 30, 2013 was proper.
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