Time Limit prescribed not Automatically applicable to refund under Notification in absence of specific provision: CESTAT allows SAD Refund [Read Order]

The New Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), allowed Special Additional Duty (SAD) refund and noted that the time limit prescribed not  automatically applicable to refund under notification in absence of specific provision.

The appellant, M/s. S.K. Rasayan Udyog Pvt Limited, imported goods during the period 9.05.2008 to 07.08.2008 and paid a total Special Additional Duty (SAD), which is in lieu of sales tax, of Rs.15,37,921. Subsequent to re-sale of the goods, the appellant applied for refund of SAD as allowable under Notification No.102/2007-Customs on 19.02.2019.

The said refund claim was adjudicated and the same was rejected on the ground of limitation following the ruling of the Bombay High Court in the case of M/s. CMS Info Systems Ltd. Vs. Union of India holding that the refund claim had to be filed within a period of one year from the date of payment of SAD, in view of the amendment vide Notification no.93/2008- Customs.

Being aggrieved, the appellant preferred appeal before the Commissioner (Appeals), who was pleased to dismiss the appeal upholding the order-inoriginal. Being aggrieved, the appellant is before the Tribunal.

The Counsel for the appellant, Jitin Singhal, inter alia, urged that the issue is no longer res integra. The Delhi High have held in the case of Sony India Pvt. Ltd. Vs. Commissioner of Customs, New Delhi under similar facts and circumstances, refund claim of SAD is not time barred as no such limitation is prescribed under the original notification no.102/2007-Customs. It was also held that period of limitation for the first time cannot be introduced through subordinate legislation or notification.

The Tribunal of Anil Choudhary, Member (Judicial) observed that “, I find that the issue herein is squarely covered by the ruling of the Delhi High Court, in favour of appellant. Further, the ruling of the Bombay High Court in M/s. CMS Info Systems Ltd. has been distinguished by this Tribunal in S.R. Traders, which judgement has been upheld by theDelhi High Court.”

The Tribunal also directed the Adjudicating Authority to grant refund along with interest at 12% p.a., starting from the end of 3 months from the date of filing of refund application.

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