2026-VIL-1624-CESTAT-CHE-CU
  1. Home
  2. 2026-VIL-1624-CESTAT-CHE-CU

CUSTOMS CESTAT Cases

Customs – Refund of Special Additional Duty (SAD) under Notification No.102/2007-Cus. – Correlation between imported and sold goods – Appellant, a trader in plastic granules, imported goods mentioned as specific grades (HDPE, LDPE, LLDPE) in Bills of Entry in March 2009; the appellant filed a refund claim for 4% SAD amounting to Rs.5,02,579/-; the original authority sanctioned the refund after examining Bills of Entry, sale invoices, Chartered Accountant's certificate and VAT/CST payments; Commissioner (Appeals) set aside the refund on the ground that sale invoices described the goods generically as "plastic granules" instead of reproducing the specific grades, and that sales were made through consignment agents – Whether the difference between the specific grades mentioned in Bills of Entry and the generic expression "plastic granules" in sale invoices is sufficient to establish that the imported goods were not subsequently sold, and whether sales through consignment agents disentitle the appellant to SAD refund under the Notification – HELD – The substantive conditions of Notification No.102/2007-Cus. do not require sale invoices to reproduce verbatim every grade or specification mentioned in Bills of Entry when the imported goods were subsequently sold with payment of applicable sales tax, as recorded by the original authority after documentary verification. The absence of grade number in the domestic sale invoice does not establish that the goods sold were different from those imported, particularly when Bills of Entry, sale invoices, reconciliation statement and Chartered Accountant's certificate correlate the goods. The circular recognises sales through consignment agents and prescribes the manner of establishment which was satisfied here; the mere fact that sales were effected through consignment agents cannot defeat the refund when VAT/CST payments were certified and correlated with the sales invoices and imported quantities – The Hon'ble Madras High Court in P.P. Products Ltd. v. Commissioner of Customs held that refund cannot be rejected merely on nomenclature differences when the adjudicating authority found no evidence that goods sold were different from imported goods – The impugned order is set aside and the refund sanctioned by the original authority is restored – The appeal is allowed
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Weekly Summary

VIL Video

GST & Customs updates: Sep'26
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Security-Code
New Code?

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Security-Code
New Code?

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?