ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 04.10.2025
CESTAT Bangalore Allows Refund of Special Additional Duty (SAD)
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), Bangalore, has delivered justice to M/s Tommy Hilfiger Arvind Fashion Pvt. Ltd., allowing their appeal for the refund of Special Additional Duty (SAD) paid on imported readymade garments. โ This decision marks a crucial win for importers navigating the complexities of customs duties and refund claims.
Background of the Case
M/s Tommy Hilfiger Arvind Fashion Pvt. โ Ltd., a prominent importer and retailer of readymade garments, had paid SAD under Section 3(5) of the Customs Tariff Act, 1975, on their imports. โ The company subsequently sold these garments through its branches across India, paying VAT or Central Sales Tax (CST) as applicable. โ To ensure proper tracking of the imported goods, the company employed a customized software system, ‘Voyager,’ which generated unique alpha-numeric codes for each item upon receipt at their warehouse. โ
The appellant filed eight refund claims amounting to Rs. โ 12,50,439/- under Notification No. โ 102/2007-Cus., supported by requisite documents, including a Chartered Accountant (CA) certificate. โ However, the claims were rejected by the adjudicating authority and later by the Commissioner (Appeals) on the grounds that the description of goods in the bills of entry did not match the sales invoices, allegedly failing to establish a one-to-one correlation between the imported goods and those sold.
Source: CESTAT Bangalore
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