Order Date – 16 March 2023

Parties: M/s. National Institute of Ocean Technology Vs The Commissioner of Customs (Appeals)

Facts –

• The Appellant, M/s. National Institute of Ocean Technology, a public funded research institute who imported various scientific instruments between June, 2011 and August, 2011, the system reportedly not extended the exemption benefit of 4% special additional duty of customs (SAD), necessitating them to pay 4% SAD for clearance of these scientific and technical instruments and parts.
• The refund claims filed were rejected stating that the appellants were eligible for exemption of both excise duty portion and 4% SAD portion but as the reassessment was not done by the assessing group, the same could not be reviewed or modified.

Issue –

• Whether the appellant is eligible or not for exemption from payment of SAD in terms of customs Notification No. 51/96-Cus dated 23.07.1996?

Order –

• The Tribunal observed that the Hon’ble Apex Court in the case of ITC Ltd. Vs. Commissioner of Central Excise, Kolkata-IV reported in 2019 (368) ELT 216 (S.C) has held that the assessment order including self-assessment needs to be challenged to become eligible for refund.
• Hence there is no need to decide about the eligibility of the appellant for SAD exemption under Notification No. 51/1996 was issued on 23.07.1996 as the appellants have not challenged the order of assessment, as such, the Tribunal held that appellants are not eligible for the refund.
• The appeal is dismissed.