SAD exemption not applicable when goods sell from a place where no sales tax is chargeable – SC

Brief of the Case

In the case of Commissioner of Customs vs. M/s. Seiko Brushware India , it was held by Supreme Court that benefit of exemption Notification No. 34/98-Cus. Dated 13.06.1998 for NIL SAD is not granted in respect of such goods which the importer sells post importation from a place located in an area where no tax is chargeable on sale of goods.

Facts of the case

The facts of the present case are that pig hair bristles that were imported were sold in the years 1998-1999 and 1999-2000.   Revenue issued a show cause notice dated 26.03.2003 stating that since these pig hair bristles were, in fact, sold without any sales tax been paid thereon, the benefit of Exemption Notification dated 13.06.1998 would not be available to the importer in the present case.

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