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2021 (11) TMI 912 - AT - CustomsRefund of SAD - payment SAD through duty credit scrip is a valid discharge of duty or not - HELD THAT:- It is an undisputed fact on record that the disputed goods imported by the appellants on payment of SAD were sold in the domestic market on discharge of appropriate VAT/Sales Tax amount levied by the respective State Governments. Further, the conditions itemized in the notification dated 14.07.2007 as amended, have been duly complied with by the appellants, as a result, the original authority had sanctioned the refund claim with regard to the SAD amount paid in cash. The base notification dated 17.09.2007 and the amending notification nowhere specified that cash refund should not be considered, in the eventuality, when the same was paid by using the duty credit scrips. Since the legislative intent is to extend the benefit of exemption upon fulfillment of certain conditions, denial of such benefit in absence of any express provisions in the statute defeats the very purpose of such legislation. The Hon’ble Delhi High Court in the case of ALLEN DIESELS INDIA PVT. LTD. VERSUS UNION OF INDIA & ORS. [2016 (2) TMI 247 - DELHI HIGH COURT], in an identical case, has held that upon fulfillment of the requirements contained in the notification, the benefit of refund should be available to the claimant. It has further been held that the circulars issued by CBEC, imposing additional restrictions for the availment of the benefit of the duty exemption cannot be acted upon inasmuch as an amendment to the notification can only be issued in exercise of the powers contained in Section 25(1) of the Customs Act, 1962 and not otherwise. There are no merits in the impugned order, insofar as it has rejected the appeal filed by the appellants in denying the refund benefit arising out of the notification dated 14.09.2007, as amended - appeal allowed - decided in favor of appellant.
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