Case Law Details
Principal Commissioner of Customs (Import) Vs M/s. Omya & Company (CESTAT Delhi)
SAD is applicable at the time of import by way of an equitable levy in lieu of sales tax, so as to protect the domestic industry. Further, the Customs Tariff Act itself provides for refund of SAD on re-sale of the goods. The mechanism of refund has been provided vide notification no.102/2007-Cus, which provides that one of the conditions for refund is that the goods must be re-sold and appropriate VAT/Sales Tax should have been paid. This Tribunal in precedent ruling of the Gazal Overseas (supra) has held that the refund of SAD is available even if the rate of VAT/Sales Tax is lower than the rate of SAD or nil.
FULL TEXT OF THE CESTAT DELHI ORDER
The issue in this appeal by Revenue is whether the Commissioner (Appeals) has rightly allowed the refund of balance SAD, paid at the time of import of Rs.36,183/- under the fact that such goods were re-sold and on such sale, the rate of VAT/Sales Tax was nil.
2. The Commissioner (Appeals) has relied upon the precedent order of this Tribunal in the case of Gazal Overseas – 2016 (332) ELT 767 (Tribunal-Delhi). This Tribunal in the said decision referred to para 5.3 of CBE&C Circular No.6/2008 dated 28.04.2008, which reads as below:-
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