Commissioner of Customs, Goa Vs Goa Golf Club Private Limited (CESTAT Mumbai)
In appeal, the Ld. Commissioner (appeals) allowed the appeal and sanctioned refund. Hence, appeal by Revenue. Hon’ble CESTAT, Mumbai dismissed the appeal filed by the Department.
The appellant purchased a vessel. It was manufactured in the custom bonded warehouse. At the time of debonding, bill of entry was filed. Special additional duty (SAD) was paid on the vessel. VAT was also paid at the time of purchase of the vessel. Accordingly, it filed claim for refund of SAD paid on the vessel in terms of Notification No.102/2007-Cus. The refund claim was rejected. In appeal, the Ld. Commissioner (appeals) allowed the appeal and sanctioned refund. Hence, appeal by Revenue. Hon’ble CESTAT, Mumbai dismissed the appeal filed by the Department.
It held:
(i) Notification No.102/2007-Cus allows refund of SAD if local sales tax is paid on the said commodity as SAD is levied on imported goods in lieu of local sales tax;
(ii) the condition that the claim can be filed by any person who has borne the incidence of the tax; the respondent being the purchaser of the vessel is entitled to claim refund;
(iii) as per section 2(26) “importer” includes owner of the goods. Hence, the respondent can claim refund of SAD;
(iv) the test of unjust enrichment is satisfied based on certificate issued by chartered accountant;
(v) follows earlier decision in Bhavna Earthmovers case.
The matter was argued by Ld. Counsel Bharat Raichandani
