High Court : Allows SAD refund; Invoice declaration of CENVAT credit inadmissibility mere procedural condition

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HC dismisses Revenue appeal, allows refund of Special Additional Duty (SAD) under Notification No. 102/2007-Cus despite non-mention of words indicating ‘unavailability of credit of such duty’ in sale invoices; Rejects Revenue contention that sale invoices should mandatorily contain the words “no credit of additional duty of customs levied under Sub-Section (5) of Section 3 of Customs Tariff Act, 1975, shall be admissible against this invoice”, in the absence of which refund claimed cannot be processed; Elucidates that while invoice issued by importer is one of the documents prescribed under Rule 9 of CENVAT Credit Rules, 2004 (CCR) to take CENVAT credit, such question for taking credit would not arise in respect of a commercial invoice which shows no details of duty paid;

Accordingly, holds that “non-declaration of the duty in the invoice issued itself is an affirmation that no credit would be available” and “would itself be a satisfaction of the condition prescribed under clause (b) of Para 2 of Notification”; Consequently, upholds CESTAT’s findings, while observing that, “Although the notification may have prescribed the words which should be included in an invoice, but the words are not magical in their scope since it is a procedural condition, as long as the intention is made clear, even by the use of other words, the assessee cannot be denied the benefit of the refund of SAD”

Citation: TS-266-HC-2018(KAR)-CUST