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2024 (4) TMI 694 - CESTAT AHMEDABADRecovery of SAD refund sanctioned erroneously - benefit of N/N. 102/2007-Cus dated 14.09.2007 denied - mis-match between the imported goods and sale of imported goods - purchase of wooden logs but sale after processing i.e. in sawn sized - As per the department since the imported goods were not sold as such the refund is not admissible - Extended period of Limitation -HELD THAT:- Obviously when the form of the wooden timber is changed the description and quantity will be different in the sale invoice as compared to the bill of entry. However, there is no allegation of the department that the goods sold by the appellant is not imported goods but some different goods. Therefore, so long the same imported goods have been sold due to minor difference in the details will not jeopardise the substantial benefit of the refund to the appellant. The main condition for granting the refund is that the importer should pay the VAT/sales tax which is not under dispute. Therefore, the SAD paid in lieu of sales tax has to be refunded. The main reason for difference of description is that the timber logs imported have undergone the process of sawing and sawn timber was sold. This issue has been raised against various importers of timber logs and in some of the cases the Tribunal has held that merely because the timber log is converted into sawn timber and the same has been sold, the benefit of the N/N. 102/2007-Cus cannot be denied. As regard other discrepancies raised by the department, the difference in description and certain other details does not prove that the goods sold by the appellant on which Notification No. 102/2007 was availed is not for the imported goods but for some other goods. Therefore, due to minor difference of details between the invoice and bills of entry is at the most merely a procedure lapse which does affect the vital facts that the SAD was paid by the importer and against sale of the said goods the appellant has discharged the VAT/sales tax, therefore, there is no concrete reason for denial of the refund. Extended period of Limitation - HELD THAT:- Admittedly the show cause notice has been issued after one year from the date of sanction of refund. The refund was sanctioned by the sanctioning authority after due verification of all the documents and if there is any difference of description, it was found that the same is not a forgery with intention to defraud the government. Therefore, it cannot be said that the appellant have suppressed the facts or mis-represent with intention to evade payment of duty. In this fact, the judgments cited by the appellant in the case of Tamil Nadu Housing Board [1994 (9) TMI 69 - SUPREME COURT] directly supports their case on limitation. Accordingly, the demand is not sustainable on limitation also. The demand for recovery of refund already sanctioned is not sustainable. Hence, the impugned order is set aside - Appeal allowed.
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