ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 07.07.2025
CESTAT Mumbai Rejected Revenue Appeals and Upholds SAD Refund
Background of the Case
Ram Ratna Infrastructure Pvt. Ltd. imported goods on which they paid 4% Special Additional Duty (SAD) under Section 3(5) of the Customs Tariff Act, 1975. These goods were subsequently sold on payment of Value Added Tax (VAT). The company filed two refund applications:
- βΉ12,06,790/- and
- βΉ2,59,343/-
claiming refund of SAD paid, supported by CA certificates confirming that the burden of duty had not been passed on to the buyer. The original adjudicating authority rejected the refund claims on the ground of unjust enrichment. However, the Commissioner (Appeals) allowed the refund, holding that the company was entitled to it and no unjust enrichment had occurred.
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: CESTAT Mumbai
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