Customs Authority can’t insist for producing entire original VAT or Sales Tax Challans unless any deficiency memo issued informing discrepancy: CESTAT [Read Order]

The Chennai Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has ruled that the customs authority cannot insist on producing the entire original Value Added Tax (VAT) or Sales Tax challans unless any deficiency memo issued informing discrepancy.

The appellant, M/s. Aditya Chemicals made an application for refund of ​​Special Additional Duty (SAD) in terms of Notification No. 102/2007- Cus. dated 14.8.2017. After due process of law, the original authority rejected the refund claim observing that the appellant has not furnished the Chartered Accountant certificate as well as correlation statement as required. The appellant preferred appeal before Commissioner (Appeals) and also produced the Chartered Accountant certificate as also the correlation statement at the first appellate stage. However, the appeal was rejected observing that Commissioner (Appeals) is not the authority before which such documents have to be furnished.

Mr. A.K. Jayaraj counsel for the appellant submitted that the Commissioner (Appeals) has held that the appellant has produced the Chartered Accountant’s certificate as well as correlation statement as required under Circular No. 6/2008. However, it is stated by him that the appellant has not furnished the original ST / VAT challans and therefore rejected the refund.

The coram of Judicial Member, Sulekha Beevi C.S. while setting aside the impugned order noted that there is no doubt with regard to any of the VAT / ST paid by the appellant. It is summarily rejected stating that the appellant has not produced the original challans. As per the above circular, the authority cannot insist on producing the entire original VAT / ST challans unless any deficiency memo is issued informing discrepancy. The appellant having furnished Chartered Accountant certificate and the Commissioner (Appeals) having recorded that it stands correlated the rejection holding that appellant has not furnished the original VAT / ST challan is unjustified.

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