ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 12.09.2025
CESTAT Chennai Allows SAD Refund Despite Procedural Lapseβ β
This Article has been written by Shri Ravi Shekhar Jha, Advocate based in New Delhi. The views expressed are based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.
In a significant ruling, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Chennai, has set aside the rejection of refund claims filed by M/s. Palfinger Cranes India Pvt. β Ltd. for Special Additional Duty (SAD) paid on imported goods. β The decision, delivered on September 11, 2025, highlights the importance of substantive compliance over procedural lapses in availing tax benefits under Notification No. 102/2007-Cus dated September 14, 2007. β
Background of the Case
M/s. Palfinger Cranes India Pvt. β Ltd. filed refund claims amounting to Rs. β 1,92,608/- and Rs. β 2,00,864/- for SAD paid on crane and crane parts imported under Bills of Entry dated May 18, 2012, and November 6, 2012. β The claims were made in accordance with Notification No. β 102/2007-Cus, which allows refund of SAD paid on imported goods if VAT or CST is paid on subsequent sales. β However, the claims were rejected by the Adjudicating Authority and later by the Commissioner of Customs (Appeals) due to non-compliance with condition 2(b) of the notification, which mandates an endorsement on sales invoices stating that “no cenvat credit would be admissible in respect of 4% CVD.”
Source: CESTAT Chennai
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