Relief to LG Electronics: CESTAT Allows Refund of SAD on Import of Goods on ground of Service Tax Exemption Eligibility [Read Order]

The Chennai bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) granted relief to LG Electronics by allowing a refund of Special Additional Duty (SAD) on the import of goods on the grounds of service tax exemption eligibility. 

LG Electronics India Pvt. Ltd, the appellant assessee was a trader and claimed the refund of SAD and had furnished all documents along with the refund claims. 

The assessee appealed against the order passed by the original authority for rejecting the refund claim filed by the assessee. 

Rohan Muralidharan, the counsel for the assessee contended that the assessee being a trader it was not possible to pass on the credit to any person and so there was no requirement to fulfill the condition as per the decision in the case of Chowgule & Company Pvt. Ltd. Vs CC. 

M. Ambe, the counsel for the department relied on the decisions made by the lower authorities and contended that the assessee was not liable for the refund claim and the rejection by the department was as per the law and liable to be sustained. 

The Bench observed that in the case of Chowgule & Company Pvt. Ltd. Vs CC & CCE, the court held that a trader-importer, who paid SAD on the imported goods and who discharged service tax liability on subsequent sale, and who issued commercial invoices without indicating any details of the duty paid would be entitled to the benefit of exemption under Notification 102/2007-Customs. 

The two-member bench comprising Sulekha Beevi (Judicial) and Vasa Seshagiri Rao (Technical) held that the rejection of the refund claim was not justified and allowed the appeal filed by the assessee. 

To Read the full text of the Order CLICK HERE

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