SAD Exemption Benefit Allowable if Imported Pre-packed Form of Goods Meant for Retail Sale: CESTAT [Read Order]

The Ahmedabad bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the Special Additional Duty (SAD) exemption benefits were allowable if the imported pre-packed form of goods meant for the retail sale by the assessee. 

DLF Southern Towns Pvt. Ltd, the appellant assessee filed Bills of Entry for clearance of a total quantity of 31360 bags of ordinary Portland Cement from Pakistan supplied by M/s. Maple Leaf Cement Limited, Pakistan. The assessee had claimed the benefit of a 4% SAD exemption which applied to prepackaged bags intended for retail sale. 

The assessee appealed against the penalty imposed by the Commissioner for the confiscation of goods. 

During the hearing of this appeal, none appeared on behalf of the assessee and Saravana Perumal appeared for the revenue department. 

The assessee submitted that the penalty imposed by the Commissioner was not as per the law and is liable to be deleted. 

The counsel for the revenue contended that the assessee had violated the policy provisions and hence, the goods were liable for confiscation and penalty. 

Further submitted that the packages did not carry the name and address of the importer as required under the import policy by the assessee. 

The bench observed that the assessee had not produced any evidence to show that the imported goods are intended for retail sale and thus, the benefit of exemption was not available. 

The two-member bench comprising P. A. Augustian (Judicial) and R. Bhagya Devi (Technical) upheld the penalty on the ground of the importer had violated the conditions of import policy and did not comply with the conditions of the notification while dismissing the appeal filed by the assessee. 

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