Order Date – 15 March 2023

Parties: M/s. ABB Limited Vs The Commissioner of Customs

Facts –

• The Appellant, M/s. ABB Limited, filed a refund claim in terms of Notification No.102/2007-Cus. dated 14.09.2007 as amended for 4% of Special Additional Duty (SAD) paid by them at the time of import of the goods.
• The refund sanctioning authority sanctioned part of the refund but however, rejected some amount observing that appellant has not satisfied the requirement as stipulated in para 2 (b) of the notification.

Issue –

• Whether the appellant is eligible for refund even though the requirement under condition 2(b) of the Notification No.102/2007-Cus. dated 14.09.2007 has not been complied?

Order –

• The Tribunal observed that in Chowgule & Company Pvt. Ltd. Vs CCE, the Larger Bench has held that “A trader-importer, who paid SAD on the imported good and who discharged VAT/ST 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-Cus., notwithstanding the fact that he made no endorsement that “credit of duty is not admissible” on the commercial invoices, subject to the satisfaction of the other conditions stipulated therein.”
• In the other decisions also, the Tribunal has held that the trader-importer would beeligible for refund even though the requirement under para 2(b) of the Notification No.102/2007-Cus. is not satisfied. Hence the rejection of refund cannot be justified and the appellant is eligible for refund.
• The appeal is allowed.