Refund of 4% SAD Allowable on Imported Goods as no Requirement that VAT Chelan should show Bill of Entry: CESTAT quashes Appeal [Read Order]

The Bangalore bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) dismissed the appeal by Commissioner of Customs (COC)(the appellant), Cochin against 4% SAD (Special Additional Duty) refund allowable on imported goods claimed by Mirc Electronics Ltd(the respondent) as there is no requirement that the VAT Chelan should show the bill of entry.

The refund of 4% SAD on goods imported by Mirc Electronics Ltd was rejected by the adjudicating authority on the ground that they failed to submit necessary documents but the appeal filed against this order was allowed by the Commissioner (Appeals). The commissioner of customs, Cochin filed this appeal challenging the order passed by the Commissioner (Appeals).

The counsel that appeared on behalf of the revenue submitted that the documents submitted by Mirc Electronics Ltd to claim the refund was not sufficient as per the notification and the VAT Chelan produced by them did not show the bill of entry.

The counsel that appeared on behalf of Mirc Electronics Ltd submitted that they have complied with the conditions imposed in the said notification since they have produced a certificate from Chartered Engineer which is only required, therefore the compulsion to produce more documents by the Commissioner of Customs was not justifiable.

The two- member bench consisting of P.A Augustian (Judicial Member) and R. Bhagya Devi (Technical Member) concluded that the Commissioner of Customs admits that Mirc Electronics Ltd had submitted the VAT Chelan and the only objection is that the Chelan was not correlating with the bill of entry, but there was no requirement for mentioning bill of entry number in the Sale Tax/VAT authority on the sale of goods.

The bench further stated that the certificate of the Charted Accountant with the details linking each sale invoice with the bill of entry alone is sufficient for the said correlation. Therefore the order by the Commissioner (Appeals) was upheld and the appeal was dismissed.

To Read the full text of the Order CLICK HERE

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