The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Ahmedabad has set aside a previous order that had denied the company a refund of Rs. 10.91 lakh. 

The bench of Dr. Ajaya Krishna Vishvesha (Judicial Member) directed the matter back to the Adjudicating Authority for fresh consideration, citing serious lapses in evaluating the documentary evidence submitted by the appellant.

The appellant, Muskan International, based in Ahmedabad, had imported goods under 20 Bills of Entry and paid all applicable customs duties, including the additional duty of customs (4% CVD). The company subsequently sought a refund of this additional duty under Notification No. 102/2007-Cus, citing compliance with the required conditions.

However, the Deputy Commissioner rejected the refund claim, stating that Muskan International had failed to meet the stipulations under the notification, read with Circulars No. 6/2008-Cus and 16/2008-Cus. 

The refund claim was rejected citing absence of VAT/CST on sales invoices from the consignment agent, missing declarations prohibiting input tax credit on the additional duty, and inadequate endorsement showing that the goods were sold by the consignment agent on behalf of the importer.

The appellant argued that the Commissioner (Appeals) issued a non-speaking order, failing to address various submissions and evidence. The department overlooked crucial Chartered Accountant certificates for July, August, and September 2015, which showed VAT payment and supported the refund claim. A certificate dated November 24, 2015, explicitly confirmed that the consignment agent, M/s. Sonal Non-Ferrous Metals Pvt. Ltd., was authorized to sell goods on behalf of the appellant.

The CESTAT found that vital documents had not been properly examined by the lower authorities.

The Tribunal set aside the Order and allowed the appeal by way of remand. The matter has now been sent back to the Original Adjudicating Authority with directions to reconsider all evidence, especially the Chartered Accountant certificates, evaluate the refund claim in light of applicable notifications and circulars, and provide a reasoned order after granting the appellant adequate opportunity to be heard.

Case Details

Case Title: Muskan International Versus Commissioner of Customs, Ahmedabad

Case No.: CUSTOMS Appeal No. 11615 of 2017-SM

Date:  21.07.2025

Counsel For Appellant: Yuvraj Thakore, Chartered Accountant

Counsel For Respondent: Himanshu P Shrimali, Superintendent (AR) 

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