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2018 (11) TMI 1531 - AT - CustomsSEZ unit - refund of SAD - N/N. 102/2007-Cus dated 14.09.2007 - rejection of refund on the ground that no statutory provision exist either in SEZ Act, 2005 or the Rules and Regulations made there under - Held that:- The major requirement of Notification No. 102/2007 stands fulfilled that the DTA unit that is indeed an importer as per SEZ Act, 2005 and the goods received by DTA were duly SAD paid. The DTA unit has further sold such goods on payment of Sales Tax/ VAT - The lower authorities rejected the claim on the ground which apparently not tenable. Jurisdiction - Held that:- The DTA Unit of the appellant i.e. unit situated at Bhimasar had correctly filed the refund claim dated 12.12.2013 with the Adjudicating Authority therefore, on this ground refund cannot be rejected. Non-compliance with the condition mentioned at Point (vii) of Circular No. 16/2008-Cus dated 13.10.2008 - Held that:- This condition is applicable when the goods are sold by a consignment agent, which obviously other than own company. In the present case, the goods were supplied by SEZ unit and received by DTA unit of the same company who sold the goods in the market therefore, in the transaction, consignment agent does not exist. The question of fulfilling a condition mentioned at point (vii) of the Circular dated 13.10.2008 does not arise. Therefore, on this count also the lower authorities have gravely erred in rejecting the refund claim. Rejection of refund claim also on the ground of transfer of goods from SEZ to DTA unit is not an import - Held that:- As per SEZ Act, 2005 and the legal fiction provided therein, the supply made from SEZ is treated as import for the receiving DTA unit and in case of any supply from DTA to SEZ, the same is treated as export - supply of goods from Special Economic Zone (SEZ) to Domestic Tariff Area (DTA) is eligible for exemption Notification No. 102/2007-Cus and consequently, the DTA unit is entitled for the refund of Special Additional Duty of customs paid on such supply. Refund cannot be rejected - appeal allowed - decided in favor of appellant.
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