The Customs, Excises, Service Taxes Appellate Tribunal (CESTAT) held that one year period of limitation prescribed under Customs Act applicable for Special Additional Duty (SAD) refund.
The respondent, S.R. Traders imported and cleared the goods under 3 Bills of Entry. While clearing the goods, they had paid the basic customs duty, additional duty, and SAD. Amount of SAD was paid vide TR-6 challans in respect of aforesaid three Bills of Entry.
The Notification No.102/2007-Customs exempts the goods from SAD falling within the First Schedule to the Customs Tariff Act, 1975, when imported into India on a subsequent sale, from the whole of the additional duty of customs leviable thereon under Section 3(5) of the said Customs Tariff Act, subject to various conditions.
The issue involved in this case is limited to the applicability of the time period (limitation) to claim refund of Special Additional Duty (SAD), paid at the time of import of goods in terms of Notification No.102/2007-Cus dated September 14, 2007 as amended by Notification No.93/2008-Cus dated August 1, 2008.
The Coram consisting of a Judicial Member, Anil Choudhary while following the decision of the High Court said that it was only with the introduction of Circular No. 6/2008-Cus. and Notification No.93/2008, the department started insisting on the limitation period of one year prescribed with effect from August 1, 2008, became applicable.
Therefore, the CESTAT held that the respondent is entitled to the refund as their right to claim refund of duty in terms of Notification has accrued only when the sale took place.
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