BRIEF FACTS OF THE CASE:

M/s. Carrier Airconditioning & Refrigeration Ltd., Narsingpur, Kherki Daula Post,
Gurgaon -122001 (hereinafter referred to as the Importer), vide their application received in this
office on 24.04.2012 has filed a refund claim of Rs.1,56,959/-(Rupees: One Lakh Fifty Six
Thousand Nine Hundred Fifty Nine Only) of 4% Special additional duty of Customs( In short
SAD) in pursuance to the Custom Notification No.102/2007 dated 14.09.2007. The Importer has
imported Rotary Compressor, Copper tube and Insulation Tube which was cleared vide bill of
Entries as detailed below:
1

S.No
.
1.
2
3

1.
2.
3.
4.
5.
6.
7.
8.

B/E No.

B/E Date

TR-6 Challan
No.

TR-6
Challan
Date

3300212

25.04.2011

2000979575

26.04.2011

3579594
3655563

23.05.2011
2001194394
31.05.2011
2001253569
Sub Total

25.05.2011
01.06.2011

Quantity
Imported

Qty Sold

972 Nos

297 Nos

3256.05 Kgs
39362 Kgs
43590.05

3240.35 Kgs
39344 Kgs
42881.35

Amount
of SAD
paid
206880.
9
74256.3
23032.1
304169.
3

Amount
of SAD
refund
(claim)
60041
73898
23020
156959

Along with the refund application the importer has submitted the following documents:
Duplicate bill of Entry in original as detailed in the table above.
Original/E-Payment duty paid TR-6 Challan as detailed in the table above.
Copy of sales invoices evidencing appropriate payment of Sale Tax/Vat etc. on the goods
sold.
Copy of Challan of Sale Tax/Vat etc.
Self-declaration that burden of 4% SAD has not been passed to the buyer.
Certificate of Chartered Accountant regarding verification of VAT/CST payment.
Certificate of Chartered Accountant regarding SAD has not been passed on to the buyers.
Calculation Work Sheet for refund.

2.1
On scrutiny of the refund application and the supporting documents submitted by the
importer, a deficiency memo of even No.2627 dated 28.11.2013. Further reminder of even
no.3092 and 15 dated 19.02.2015 and 06.04.2015 respectively also issued to the Importer
regarding non-submission of the Stock Transfer Invoices and explanation of difference in
Product Description mentioned on Bill of Entry and Sales Invoices in respect of Bills of Entry
pertaining to the refund claim.
2.2
The importer submitted reply vide their letter dated 20.05.2015 and stated therein that
there is slight change in the nomenclature of the product mentioned on Import documents and
Sales Documents but the main nomenclature remained the same. The party has explained the
difference in product description product wise which is as given below :a) The party has informed that on Import Documents the description of Rotary
Compressor is Rotary Compressor Airconditioner PH400X3CE-4KTS1 whereas on sales
invoices the same is mentioned as Rotary Compressor 24K (CDU) GMCC. The party has
submitted that the main word Rotary Compressor remains the same in both documents they have
used 24K for 2.0 Ton capacity, (CDU) for Condensing Unit and GMCC stands for name of the
supplier.
b) Regarding Copper Tube the party has submitted that major description remained the
same in Import as well as Sales Documents. The only difference is that on Import Documents the
internal dia of Copper Tube is mentioned in MMs whereas in Sales document the same is
mentioned in Inches.
c) Regarding Insulation tube the party has submitted that they have inserted the word
Nitrile before Insulation tube in Sales Document because it is a Technical Name of the product in
India.
2.3
Regarding Stock Transfer Invoices it is observed on careful scrutiny that the party have
submitted the invoices in CD form vide which they paid the applicable VAT/CST on the sale of

imported goods and worksheet of the same has been duly certified by the Chartered Accountants
P.Kapoor & Co who prepare their Balance Sheet.

DISCUSSION AND FINDINGS

3
I have carefully gone through the facts of the case. It is observed that the Importer has
imported Rotary Compressor, Copper tube and Insulation Tube in total quantity of 43590.05
Kgs/Nos vide Bill of Entry as detailed in the table above and paid 4% additional duty amounting
to Rs.304169/-. The importer sold 42881.35 Kgs/Nos of material to various buyers by charging
applicable VAT/CST.
4
On scrutiny of the refund application and the supporting documents as listed in the para 2
above submitted by the importer, it was observed that the Importer has fulfilled the requirements
as stipulated under the Boards Circular No.6/2008-Cus. Dated 28.04.2008 & 16/2008-Cus.
Dated 13.10.2008,. The Importer has filed the claim on 24.04.2012 i.e. well within one year of
payment of duty. The Importer has submitted the copy of sales invoices with declaration No
credit of the additional duty of customs levied under sub section 3 of the Customs Tariff Act,
1975 shall be admissible. The Importer has submitted copy of CST/VAT Challan proving
payment of the same. The Charted Accountant, who certifies the Annual Financial Accounts
under the Companies Act of the Importer, in his certificate has certified that the Importer has
deposited the CST/VAT with the concerned departments. He has also certified to the effect that
the burden of 4% SAD has not been passed on to the buyer by the importer and the clause of
unjust enrichment do not apply to the present refund claim..
5
The refund claim of of 4% of SAD amounting to Rs. Rs.1,56,959/- as claimed, is
refundable to the importer in terms of the provision of Customs Notification no.102/2007 dated
14.09.2007 read with the provisions of Section 27 of the Customs Act, 1962 and Boards
Circular No. 06/2008-Cus. Dated 28.04.2008 & 16/2008-Cus. Date 13.10.2008
6
The refund claim is proper in all respect and admissible to the importer and accordingly,
I pass the order as below:

Order
In view of the foregoing findings and discussion, I hereby sanction the amount of Rs..
1,56,959/-(Rupees: One Lakh Fifty Six Thousand Nine Hundred Fifty Nine Only) to M/s.
Carrier Airconditioning & Refrigeration Ltd., Narsingpur, Kherki Daula Post, Gurgaon
-122001., as refund under Section 27 of the Customs Act 1962 and same will be paid to the
Importer through RTGS.

(S.S.HUNDAL)
ASSISTANT COMMISSIONER, (REFUND)
ICD GARHI HARSARU, GURGAON (H.R)

M/s. Carrier Airconditioning & Refrigeration Ltd.,

Narsingpur, kherki, Daula Post,
Gurgaon -122001
Copy to:

1.
2.
3.
4.

The Commissioner of Customs, ICD, Garhi Harsaru, ICD Patparganj, Delhi.

The Joint Commissioner, ICD Patparganj, for information.
The Deputy Commissioner (Review), ICD Patparganj, Delhi.
Guard File

SUPERINTENDENT OF CUSTOMS
ICD GARHI HARSARU, GURGAON(H.R.)

M/s. Carrier Airconditioning & Refrigeration Ltd., Narsingpur, Kherki Daula

Post, Gurgaon -122001 (hereinafter referred to as the Importer), vide their application

received in this office on 24.04.2012 has filed a refund claim of Rs.1,56,959/(Rupees: One Lakh Fifty Six Thousand Nine Hundred Fifty Nine Only) of 4%
Special additional duty of Customs( In short SAD) in pursuance to the Custom
Notification No.102/2007 dated 14.09.2007. The Importer has imported Rotary
Compressor, Copper tube and Insulation Tube which was cleared vide bill of Entries
as detailed below:
S.No
.
1.
2
3

B/E No.

B/E Date

TR-6
Challan No.

3300212

25.04.2011

200097957
5

26.04.2011

3579594

23.05.2011

2001194394

25.05.2011

3655563

31.05.2011

200125356
9
Sub Total

TR-6
Challan
Date

01.06.2011

Quantity
Imported

Qty Sold

972 Nos

297 Nos

3256.05
Kgs
39362
Kgs
43590.05

3240.35
Kgs
39344 Kgs
42881.35

Amount
of SAD
paid

Amount
of SAD
refund
(claim)

206880.
9

60041

74256.3

73898

23032.1

23020

304169.
3

156959

Along with the refund application the importer has submitted the following
documents:
1. Duplicate bill of Entry in original as detailed in the table above.
2. Original/E-Payment duty paid TR-6 Challan as detailed in the table above.
3. Copy of sales invoices evidencing appropriate payment of Sale Tax/Vat etc. on the
goods sold.
4. Copy of Challan of Sale Tax/Vat etc.
5. Self-declaration that burden of 4% SAD has not been passed to the buyer.
6. Certificate of Chartered Accountant regarding verification of VAT/CST payment.
7. Certificate of Chartered Accountant regarding SAD has not been passed on to the
buyers.
8. Calculation Work Sheet for refund.
2

2.1
On scrutiny of the refund application and the supporting documents submitted by
the importer, a deficiency memo of even No.2627 dated 28.11.2013. Further reminder
of even no.3092 and 15 dated 19.02.2015 and 06.04.2015 respectively also issued to the
Importer regarding non-submission of the Stock Transfer Invoices and explanation of
difference in Product Description mentioned on Bill of Entry and Sales Invoices in
respect of Bills of Entry pertaining to the refund claim.
2.2
The importer submitted reply vide their letter dated 20.05.2015 and stated therein
that there is slight change in the nomenclature of the product mentioned on Import
documents and Sales Documents but the main nomenclature remained the same. The
party has explained the difference in product description product wise which is as given
below :a) The party has informed that on Import Documents the description of Rotary
Compressor is Rotary Compressor Airconditioner PH400X3CE-4KTS1 whereas on
sales invoices the same is mentioned as Rotary Compressor 24K (CDU) GMCC. The
party has submitted that the main word Rotary Compressor remains the same in both
documents they have used 24K for 2.0 Ton capacity, (CDU) for Condensing Unit and
GMCC stands for name of the supplier.
b) Regarding Copper Tube the party has submitted that major description
remained the same in Import as well as Sales Documents. The only difference is that on
Import Documents the internal dia of Copper Tube is mentioned in MMs whereas in
Sales document the same is mentioned in Inches.
c) Regarding Insulation tube the party has submitted that they have inserted the
word Nitrile before Insulation tube in Sales Document because it is a Technical Name of
the product in India.
2.3
Regarding Stock Transfer Invoices it is observed on careful scrutiny that
the party have submitted the invoices in CD form vide which they paid the

applicable VAT/CST on the sale of imported goods and worksheet of the same has
been duly certified by the Chartered Accountants P.Kapoor & Co who prepare
their Balance Sheet.
As regards to the principle of unjust enrichment, it is certified by their Statutory
Auditors i.e. M/s P. Kapoor, Chartered Accountants that the burden of 4% CVD has not
been passed on by the importer to the buyer.
In light of the above facts, the Refund Claim of Special Additional Duty @4% as per
Notification 102/2007 Dated 14.09.2007 of Rs. 186831/- may please be considered. Draft
refund order is put up for approval please.
Submitted please.