TMI Blog2015 (1) TMI 323X X X X Extracts X X X X X X X X Extracts X X X X ..... T. Undisputedly, the Sales Tax/VAT is exempted in this case. In this regard, learned Commissioner (Appeals) has found that the element of CVD is a tax in lieu of Sales Tax/VAT and that once the Importer fulfils the obligation of paying both the CVD and the Sales Tax/VAT, then he is entitled to refund of the CVD he had paid. It is pertinent to mention here that what is abated cannot be taken away i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CVD is in lieu of Sales Tax/VAT and the contention is that the Special CVD is levied as per the provisions of sub-section 5 of Section 3 of the Central Excise Tariff Act, 1985. The contention is that the said Notification grants exemption for the Special CVD where the assesses are able to show that they have paid the Sales Tax/VAT as per the condition 2(d) of the aforesaid Notification. The conte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... D is levied for counter-balancing for Sales Tax/VAT. Undisputedly, the Sales Tax/VAT is exempted in this case. In this regard, learned Commissioner (Appeals) has found that the element of CVD is a tax in lieu of Sales Tax/VAT and that once the Importer fulfils the obligation of paying both the CVD and the Sales Tax/VAT, then he is entitled to refund of the CVD he had paid. The relevant portion of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... question of asking him whether he has paid the Sales Tax. The very fact that he has produced the Exemption Notification is sufficient enough to admit the refund claim. In other word, when the subject goods is exempted from Sales Tax, it necessary follows that he is not required to pay the CVD. When the Item imported is exempted from Sales Tax/VAT, the same should have also been exempted from CVD. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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