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2019 (3) TMI 125 - AT - CustomsRefund of SAD - N/N. 102/2007-Cus. read with Board Circular No. 16/2008 and Section 27(1) of Customs Act, 1962 - refund rejected on the ground of time limitation - Held that:- A cursory reading of the N/N. 102/2007-Cus. and N/N. 93/2008-Cus. would clearly reveal that in the public interest, such notifications were made by the Government of India and SAD was made applicable to counter balance CST/VAT and create a level playing field for domestic goods so that price different from the locally manufacture goods and imported goods would not put the local manufacturer in a disadvantageous position - Admittedly CST, VAT are collected for distribution among the states, for which it is difficult to understand why SAD is introduced as a counter balance. It appears that only to maintain the price equilibrium, SAD has been introduced as a precautionary major to provide coverage to indigenous goods. Therefore, it is collected with the above purpose of providing a security to such indigenous goods and collected as a security from the importer so that the movement they sale it up in the domestic market, they will pay CST/VAT accordingly and get back the SAD already paid, by way of refund. Amended sub-para (c) of para 2 which stipulated the time period to filed claim of refund as one year from the date of payment of said additional duty of Customs should be read as effective payment of additional duty of Customs by way of CST/VAT as the purpose of payment of SAD at the time of import was in the nature of counter balancing the CST/VAT etc. which could be treated as par with security - Such stipulation of time frame is meant for payment of CST/VAT which was realised against counter balance by way of payment of SAD, the same period of one year is to be computed from the date of payment of CST, VAT etc., upon sale of goods. It is a settled principle that Tribunal being creature of statute, cann’t go beyond the provisions of law but there is no impediment on the part of the Tribunal to read into the law to provide meaning and Charity to the provisions of law for the purpose of making it virtually implementable. The appellant refund claim is to be reassessed on the basis of date of payment of CST/VAT etc. that was earlier deposited by way of SAD that has been exempted vide Notification No. 102/2007-Cus. and 93/2008-Cus. and allowed if claim is made within one year of payment of CST/VAT - Appeal allowed in part.
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