Delhi HC: Bipolar Disorder Alone Does Not Qualify as Medical Disability Without Benchmark Criteria  ||  Kerala HC: Excommunicating Knanaya Catholics For Marrying Outside the Community is Unconstitutional  ||  Kerala HC: Temporary Use of Religious Land For Public Infrastructure is Not a ‘Transfer’ under Law  ||  P&H HC: Habeas Plea in Child Custody Case Not Maintainable if Child is With Natural Guardian and Safe  ||  Delhi HC: Illegal Termination Does Not Automatically Entitle Employee to Reinstatement or Back Wages  ||  Gujarat High Court: Forcing Toddler to Attend Court 6 Hours Weekly For Grandfather Visits is Unjust  ||  Supreme Court Rejects Sameer Wankhede’s Plea, Directs Timely Resolution of Disciplinary Proceedings  ||  Supreme Court Rejects NHAI Review on Solatium Retrospectivity, Bars Reopening Settled Claims  ||  SC: Excise Duty Exemptions Based on Intended Use Must be Construed Liberally For Assessee  ||  Supreme Court: DSC Personnel Eligible For Second Pension; Allows Condonation of Shortfall    

Faxtel Systems (India)Pvt Ltd vs. The Principal Commissioner Customs - (Customs, Excise and Service Tax Appellate Tribunal) (25 Jun 2024)

In absence of any allegation of fraud or collusion, CA certificate is sufficient to grant the refund claim

MANU/CB/0139/2024

Customs

Issue in the present appeal is regarding refund of Special Additional Duty paid on import of goods. The Appellant had re-imported goods and it was cleared on payment of customs duty and 4% SAD as per Notification No. 102/207 dated 14.09.2007. Thereafter goods were sold and on payment of VAT, appellant submitted refund claim for refund of 4% SAD.

However, the refund application was rejected on the ground that the CA certificate has not stated as how the unjust enrichment was not applicable. Aggrieved by said order, an appeal was filed before Commissioner (Appeals) and considering the issue, the Commissioner (Appeals) remanded the matter to adjudication authority with a direction to the appellant to submit explanation from their CA as to how they arrive at the conclusion that the duty amount was not passed on to the customers. Thereafter adjudication authority considered the issue and even after submitting detailed explanation by the statutory auditor, the adjudication authority allowed refund partially.

The limited issue in the present appeal is regarding the defect related to refund claim submitted by the Appellant. It is the admitted fact, that appellant had paid 4% SAD at the time of import and the Appellant had also paid VAT as Customs Appeal No. 20817 of 2014 applicable while selling the goods. The Appellant also complied with the condition No. 2(b) in the Notification No. 102/2007 where it is stated that "the importer, while issuing the invoice for sale of the said goods, shall specifically indicate in the invoice that in respect of the goods covered therein, no credit of the additional duty of customs levied under sub-section (5) of Section 3 of the Customs Tariff Act, 1975 shall be admissible.

It is an admitted fact that the amount paid by the appellant as 4% SAD is not passed on to the buyers and the said aspect was confirmed by the statutory auditor of the appellant while issuing certificate. As regarding the objections made by lower authority, issue is squarely covered by the decisions of the Tribunal relied by the appellant, it is settled that once CA certificate is produced and in the absence of any allegation of fraud or collusion, such certificate is sufficient to grant the refund claim. Refund should not be denied merely on technical violations.

Impugned order rejecting the refund claim is not sustainable. Therefore, impugned order is set aside. Appeal allowed.

Tags :   REFUND  DENIAL  LEGALITY

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved