The Mumbai Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) while directing the customs department to refund the Special Additional Duty of customs (SAD) held that TR-6 challans are sufficient proof of duty incidence borne by importer.

The bench of Anil G. Shakkarwar (Technical  Member) has observed that only contention on the basis of which refund was rejected is that the appellant-importer has not established that the appellant had borne the incidence of customs duty. With the copies of TR-6 challans, it is established that the appellant had borne the burden of SAD.

The appellant/assessee had imported certain goods through three Bills of Entry and subsequently submitted application for refund of SAD i.e. Special Additional Duty of customs amounting to Rs.2,87,801. The original authority through order rejected the claim of refund on the grounds that the duty which was sought to be refunded was paid by DHL and there was no evidence that such duty was paid on account of the appellant. 

The Appellant preferred appeal before the Commissioner (Appeals) who also rejected the appeal. 

The appellant contended that the appellant is entitled for refund of SAD when the goods are sold in the market and the same goods suffered levy of VAT. There is no dispute that the goods were sold in the market and the goods suffered levy of VAT. He has submitted that the goods were cleared by their clearing agent bearing Customs Broker and the courier was DHL.

The appellant contended that he is having a running account with their Customs Broker who keeps on making payment on behalf of the appellant for clearance of the goods. He has submitted a copy of TR-6 challan which indicates that the customs duty was paid by the appellant since the said challan states the name and address of the importer as M/s. VMS International Pvt. Ltd. There are many challans which would cover the entire refund of SAD of Rs.2,87,801 where the name and address of the importer stated in the TR-6 challan is that of the appellant.

The tribunal set aside the order and directed the original authority to pay the refund of SAD of Rs.2,87,801.

Case Details

Case Title: Varian Medical Systems International (India) Pvt. Ltd. Versus Commissioner of Customs, Air Special Cargo

Case No.: Customs Appeal No. 85622 of 2022

Date: 07.05.2025

Counsel For Appellant: Anil Balani with Ms. Priyasha Pawar

Counsel For Respondent: L.B. D’Coasta, Deputy Commissioner

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