The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) ruled that the refund claim cannot be rejected in respect of customs duty which was paid through Duty Entitlement Pass Book (DEPB) scrip.
The respondent, M/s New Way Vyapaar Private Limited, imported Sulphuric Acid Brown in bulk and cleared the same for home consumption by paying Customs duty including SAD @ 4%. The duty was paid by DEPB license and cash proportionately. The duty paid towards SAD works out Rs.3,31,931.77.
The respondent filed a claim for refund of SAD to the tune of Rs.3,30,837.28 in terms of Notification No.102/2007-Cus dated 14.09.2007 along with all relevant documents. The refund claim to the tune of Rs.98071/- was sanctioned, which is the proportionate SAD amount paid in cash, but the remaining claim was rejected.
Against the said order, the respondent filed the appeal before the Commissioner (Appeals), who allowed the refund claim of duty paid by way of DEPB scrips.
The Tribunal in the case of Virgo Suitings Private Limited held that “I do not find any justification for rejecting the refund claim in respect of the duty which was paid through DEPB scrip and therefore the impugned order cannot sustain. Accordingly, the appeals filed by the appellant are allowed with consequential relief, if any, in accordance with law.”
A two-Member Bench comprising observed that “As the issue is no more res-integra in view of the judicial pronouncements of the High Court and the Tribunal and the Commissioner (Appeals) has followed the same. In those circumstances, we do not find any infirmity in the impugned order and the same is upheld and the appeal filed by the Revenue is dismissed.”
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
