CESTAT Chennai Grants SAD Refund to LG Electronics

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai Bench has allowed the appeal filed by M/s LG Electronics India Pvt. Ltd., setting aside the denial of ₹1,35,179/- of Special Additional Duty (SAD) refund under Notification No. 102/2007-Cus. dated 14.09.2007.

Case Background

Appellant: M/s LG Electronics India Pvt. Ltd., Greater Noida
Commissionerate: Chennai Seaport
Appeal No.: Customs Appeal No. 42340 of 2014
Date of Order: 16 February 2024
Tribunal Members: Mrs. Sulekha Beevi (Judicial) and Mr. Vasa Seshagiri Rao (Technical)

Grounds of Refund Rejection

Refund Claim Filed For: SAD on imports cleared under Bills of Entry dated 09.02.2009 and 17.02.2009
Amount Rejected: ₹1,35,179/-
- ₹1,14,519/- rejected for alleged mismatch between CD invoice and hard copy invoice.
- ₹20,660/- rejected due to non-production of sales invoice.

CESTAT Findings

The appellant provided:
- Chartered Accountant’s Certificate verifying sale invoices and correlation with imports.
- Hard copies of all necessary sales invoices during appellate proceedings.
The Department did not dispute the authenticity of the CA Certificate or other submitted documents.
The Tribunal held:

“Refund ought not to be rejected on flimsy grounds. The Department does not dispute the veracity of the Chartered Accountant Certificate as well as documents furnished.”

It concluded that the refund rejection was procedurally incorrect, especially since the conditions of Notification No. 102/2007-Cus. were fulfilled.

Final Order

Order-in-Appeal dated 30.07.2014 set aside
Appeal allowed in full
Refund of ₹1,35,179/- granted with consequential relief

Legal Significance

The order reinforces the view that minor document discrepancies or format variations (CD vs hard copy) cannot be used to deny substantive refund rights when all other statutory conditions are fulfilled.
It further strengthens reliance on CA Certificates and underlines the need for a pragmatic, non-technical approach in refund adjudication.

Conclusion

This CESTAT ruling is a valuable precedent for importers, especially those in the consumer electronics sector, often subject to scrutiny under SAD refund provisions. It highlights the importance of substantive compliance over technical lapses and offers clarity on document verification standards in refund cases.

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Source: CESTAT

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