Sanction of Refund Claim of SAD on ground of Genuine Disclosure of Relevant Documents: CESTAT Dismisses Appeal of Revenue [Read Order]

The Chennai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) dismissed the appeal filed by the revenue on the ground of genuine disclosure of relevant documents filed by the assessee for the sanction of refund claim of Special Additional Duty (SAD). 

Doosan Infracore India Pvt. Ltd, the respondent assessee had filed a refund claim for refund of the SAD (Special Additional Duty) under notification and originally allowed the refund claim the revenue was appealed before the Commissioner (Appeals) for rejecting the refund claim, and the Commissioner also upheld the sanction of the refund claim of SAD. 

The revenue appealed against the order passed by the Commissioner (Appeals) for sanctioning the refund claim filed by the assessee. 

R. Rajaraman, the counsel for the department contended that the certificate stated that 4% additional duty being claimed as a refund, had been shown in the books of account/balance sheet as “receivables” under the sub-heading “Loans and Advances” under the Head “Current Assets” and the assessee was not eligible for the refund claim. 

Further submitted that the certificate indicated that the chartered accountant had verified the books of account and it was not clear whether the books of accounts for February and March 2011 were scrutinized and also issued the certificate for the entire claim without verifying the books of account. Thus the refund sanctioned based on the above certificate was not legal and proper. 

The assessee submitted that the books of account filed by the assessee were genuine and disclosed all the income of the assessee and claimed the special additional duty by producing all the relevant documents before the adjudicating authority. 

The bench observed that there was no evidence put forth by the Department to disprove the credence of the Chartered Accountant certificate. 

The two-member bench comprising Sulekha Beevi (Judicial) and Vasa Seshagiri Rao (Technical) held that the appeal filed by the revenue does not contain any merit and dismissed the appeal filed by the revenue. 

To Read the full text of the Order CLICK HERE

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