No Limitation prescribed under Original Notification: CESTAT allows SAD Refund [Read Order]

The Customs, Excise and Service Tax Appellate Tribunal ( CESTAT ), New Delhi Bench allowed the refund of Special Additional Duty ( SAD ) on the ground that the limitation period was not prescribed under the original notification.

The appellant,Keshar Deo Ramesh Kumar, imported goods for trade and had claimed refund of Special Additional Duty (SAD), as allowable under Notification No.102/2007-Customs on 19.02.2019 and the said refund claims were adjudicated as time barred.

Being aggrieved, the appellant preferred appeal before the Commissioner (Appeals), who was pleased to reject the appeal upholding the rejection of refund claims on the ground of limitation, following the ruling of the Bombay High Court in the case of M/s. CMS Info Systems Ltd. Vs. Union of India holding that the refund claim had to be filed within a period of one year from the date of payment of SAD, in view of the amendment vide Notification no.93/2008-Customs.Being aggrieved, the appellant is before the Tribunal.

Jitin Singhal, urged that the issue is no longer res integra. The Delhi High (jurisdictional High Court) have held in the case of Sony India Pvt. Ltd. Vs. Commissioner of Customs, New Delhi under similar facts and circumstances, refund claim of SAD is not time barred as no such limitation is prescribed under the original notification no.102/2007-Customs. It was also held that period of limitation for the first time cannot be introduced through subordinate legislation or notification.

It was also ruled in the above-mentioned case that limitation cannot start to run prior to crystallization of the right to claim refund. The said ruling has been repeatedly followed in a catena of judgements including the case of CC (Import) Vs. M/s. Gulati Sales Corporation and also in the recent decision of Delhi High Court in Premier Timber and Trading Pvt Ltd. Vs. Principal Commissioner of Customs (Imports).

The Bench comprising Anil Choudhary, Judicial Member observed that “I find that the issue herein is squarely covered by the rulings of the Hon’ble Delhi High Courts cited above, in favour of appellant. Further, the ruling of the Bombay High Court in M/s. CMS Info Systems Ltd has been distinguished by the Tribunal in S.R. Traders which judgement has been upheld by the Delhi High Court,”

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