CESTAT on Refund of CVD & SAD – Paid to regularize import under Advance Authorization

Servo Packaging Ltd. Vs. Commissioner of GST & CE, Puducherry (CESTAT Chennai)

FACTS

The Appellant imported goods without payment of duties under the Advance Authorization License. However, the Appellant could not fulfil its export obligation against the said import due to lack of export orders. In order to regularize the said imports, to the extent there was shortfall in the export obligation, the Appellant paid the relevant Custom Duties along with interest. These duties were paid during GST regime.

The Appellant filed a refund application under Section 142(3) of the CGST Act, 2017 for the duties i.e., CVD and SAD, paid due to non-fulfilment of export obligation. Section 142(3) of the CGST Act, 2017 reads as under:

“Section 142(3)- Every claim for refund filed by any person before, on or after the appointed day, for refund of any amount of CENVAT credit, duty, tax, interest or any other amount paid under the existing law, shall be disposed of in accordance with the provisions of existing law and any amount eventually accruing to him shall be paid in cash, notwithstanding anything to the contrary contained under the provisions of existing law other than the provisions of sub-section (2) of section 11B of the Central Excise Act, 1944 (1 of 1944);

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