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2023 (7) TMI 324 - AT - CustomsRefund of SAD - interpretation of Notification No. 21/2012-Cus. dated 17.03.2012 - Revenue entertained a doubt that the goods imported by the assessee-respondent did not appear to be meant for retail sale - goods imported can be considered to be a “pre-packaged commodity” in terms of the provisions of the Legal Metrology Act or not - HELD THAT:- There are clearly buyers, identified or otherwise, for the pre-packaged goods; there is no dispute that such pre-packaged goods were sold by the importer to the buyers/resellers and that MRP/RSP labelling was witnessed by the proper officer at the Customs notified area - there are no disputes to the factual position taken out either in the grounds-of-appeal or even in the impugned Order-in-Original, except as per paragraph 13 of this order, and therefore, it is held that the importer has satisfied the conditions of Notification No. 21/2012-Cus. ibid. It is noticed that in the earlier paragraphs of this order that the levy of SAD is to counterbalance the State levies in the form of VAT / ST / CST. This means that the importer is normally liable to pay SAD at the time of import; when such goods imported are subsequently sold locally on payment of applicable VAT / ST / CST, the whole of the SAD that was levied on such imported goods could be claimed as refund by the importer. This is the scheme incorporated in Notification No. 102/2007-Cus. dated 14.09.2007, which was intended to provide a level playing field to importers/traders who clear goods against payment of SAD vis-à-vis manufacturers, who did not pay SAD while manufacturing the goods domestically and thereby to remove the burden of double taxation on such importers. The above Notification underwent subsequent amendments. Extended period of limitation - HELD THAT:- By virtue of the above counterbalancing act, there is no loss to the exchequer and therefore, the issue is clearly revenue neutral. This will definitely have a bearing on the allegations as to suppression of facts, etc., for invoking the extended period of limitation - Hence, it is not only on the issue of revenue neutrality, but also on the point of invocation of extended period of limitation, apart from merits, that the Revenue has to fail. Thus, it is clear that the Department was aware as to what was being imported and the purpose and hence, there was nothing that was “suppressed”, more so, to evade payment of duty. There are no infirmity in the impugned order and therefore, the same does not call for any interference - appeal of Revenue dismissed.
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