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2013 (4) TMI 51 - AT - CustomsRefund Claims of SAD levied u/s 3(5) Customs Tariff Act, 1975) - Notification No. 102/2007-CUS - Sale after processing - HR/CR coils - process of cutting and slitting - change in the classification - Held that – It is a settled law that what is required to be seen while considering whether the process amounts to manufacture is whether a new article with distinct name, character and use has emerged or -not and not whether the tariff heading has changed. Therefore, just because after cutting and slitting, the tariff heading changes we cannot say that the -products do not remain the same. No doubt there is an obligation on the importer to show that what he has sold are the goods which were imported by him. When the importer imports goods, for further manufacture they would get modvat credit or cenvat credit of SAD paid by them. In the case of an importer who imports the goods for selling, the SAD was exempted under Notification No.34/98 and under Notification No. 102/2007 they are eligible for refund. The domestic manufacturers are not affected by the SAD since they can take cenvat credit whereas the importer who sells the goods as such does not get the benefit of credit and therefore either exemption has to be extended or he is to be given refund. On this account also the appellant is eligible for refund. In view of the above discussions, the impugned order is set aside and appeals are allowed and the matter is remanded to the original adjudicating authority for the limited purpose of verifying as to whether the appellant is able to show that the imported goods only have been sold by them after cutting and slitting and nothing else.
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