Refund Sanctioning Authority can’t insist to produce Original Documents: CESTAT [Read Order]

The Customs, Excise & Service Tax Appellate Tribunal ( CESTAT ) Chennai, on last Tuesday set aside a rejection of refund claimed by Wipro and held that the photocopies of bills of Entry, TR6 challans and sales invoices produced should be held admissible for claiming the refund.

The Appellants, Wipro Ltd., filed the refund claim for refund of special additional duty (SAD). The original authority rejected the refund claim on the ground that only photocopies of the Bills of Entry, TR6 challans, and sales invoices were produced by the appellant. Thus, for want of production of original documents, refund claim was rejected, which was later upheld by Commissioner (Appeals).

The counsel on behalf of the appellants pleaded that when there is no dispute with regard to correlation of the import and the sales invoices as supported by Chartered Accountant’s certificate, the rejection of refund is unjustified. Also, the department cannot insist on producing originals of the documents when the notification itself says that copies of the document have to be provided. The counsel further relied upon Circular No. 16/2008-Cus. dated 13.10.2008 and submitted that the circular has clarified that it is sufficient to produce the copy of invoices.

Judicial Member Sulekha Beevi C.S. and technical member Shri Madhu Mohan Damodhar found out that there was no requirement producing the originals before the refund sanctioning authority as it wasn’t specified anywhere in the law.

“On perusal of Notification No.102/2007, we find that there is no requirement of producing the originals before the refund sanctioning authority. Therefore the authorities below cannot insist that the appellant has to produce the original document. The original authority has noted in the order that the appellant has produced copies of all documents along with Chartered Accountant’s certificate. In such circumstances, the rejection of the refund claim stating that the appellant has not produced original Bills of Entry, TR6 challan, and sales invoices is unjustified. The Circular clarifies the same.” the bench said while allowing the second appeal.