ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 30.06.2025
Delhi High Court Upholds SAD Refund & Latest Customs Notification
The Delhi High Court in Commissioner of Customs (ICD Import) vs. Suzuki Motorcycle India Pvt. Ltd., has upheld the right of the importer to claim refund of Special Additional Duty (SAD) under Section 27 of the Customs Act, 1962, despite the one-year limitation condition prescribed in Notification No. 102/2007-Customs, as amended.
The Court dismissed the Revenueโs appeal and upheld the CESTATโs decision, marking a key precedent for SAD refund claims and interpretation of refund limitations under customs notifications.
Case Background
- Suzuki Motorcycle India Pvt. Ltd. had imported goods on payment of Special Additional Duty (SAD) and later sold them in the domestic market, paying VAT/CST, as required under Notification No. 102/2007-Cus.
- The company sought refund of SAD under the said notification but filed claims beyond the one-year period stipulated by the 2008 amendment to the notification (Notification No. 93/2008-Cus).
- The Department rejected the refund, citing delay, leading to the matter being contested before CESTAT, which allowed the refund.
- The Department filed an appeal before the Delhi High Court, relying on the Bombay High Courtโs ruling in CMS Info Systems Ltd. v. UOI [2017 (349) ELT 236 (Bom)], which had upheld the one-year limitation.
This Article has been written by Shri Ravi Shekhar Jha, Advocate Delhi High Court based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.
Source: Delhi High Court
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