C/10723/2023 — Advanced Medtech Solution Private Ltd vs Customs Ahmedabad

Customs, Excise & Service Tax Appellate Tribunal West Zonal Bench At Ahmedabad

REGIONAL BENCH- COURT NO.1

Customs Appeal No. 10723 of 2023-SM

(Arising out of Order in Appeal AHD-CUSTM-000-APP-133-23-24 Dated 01/08/2023 passed by the Commissioner ( Appeals) of Customs, Ahmedabad)

Advanced Medtech Solution Private Ltd

........Appellant
P-21-22, 25-26 & 34-35, GIDC Manjusar,
Tal - Savli, Dist. Vadodara -391775 VERSUS Commissioner of Customs- Ahmedabad
........Respondent Office of the Pr. Commissioner of Customs,
1st Floor, Custom House, Opposite Old High Court,
Navrangpura, Ahmadabad-380009, Gujarat

APPEARANCE: Shri Amit Laddha, Advocate appeared for the Appellant
Shri Himanshu Nachane, Superintendent(AR) appeared for the Respondent

CORAM: HON'BLE MR. SOMESH ARORA, MEMBER ( JUDICIAL )

FINAL ORDER NO. 10230/2026

      DATE OF HEARING/DECISION :27.03.2026     

SOMESH ARORA 1. The appellant has claimed a refund of excess duty paid, to the extent of 5%, to which the Department has no serious objection, as the transaction itself is not in dispute. Upon examination of the records, it is found that the appellant had paid duty at the rate of 10%, whereas the applicable rate of duty under Notification No. 12/2012-Cus. dated 17.03.2012 and Notification No. 50/2017-Cus. dated 30.06.2017 was only 5%.

appellant had paid duty at the rate of 10%, whereas the applicable rate of duty under Notification No. 12/2012-Cus. dated 17.03.2012 and Notification No. 50/2017-Cus. dated 30.06.2017 was only 5%. However, for the purpose of sanctioning the refund, it is necessary to verify whether the incidence of such excess duty has been passed on to the customer. In this regard, the appellant has produced a certificate issued by CNK & Associates LLP, placed on pages 118 to 120 of the appeal paper book. Pages 118–119 contain the certificate, which are as under:

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2.   However, as part of the certificate, an annexure has also been produced 
   

at page 120, which is reproduced as under:

“Annexure This is to certify that the refund amounting to INR 14,74,970.85/- i.e. Fourteen Lakhs Seventy-Four Thousand Nine Hundred and Seventy Rupees and Eighty Five Paise only claimed by M/s Advanced MedTech Solutions Private Limited the incidence of tax as claimed by the applicant, has not been passed on to any other person. There is no unjust Enrichment. Further, the certificate has been issued only for the Refund of the excess duty paid based on data provided.”

applicant, has not been passed on to any other person. There is no unjust Enrichment. Further, the certificate has been issued only for the Refund of the excess duty paid based on data provided.”

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3. The certificate does not indicate the nature of records examined, the statutory framework under which such verification was carried out, or whether the Chartered Accountant is independent or in any way related to the appellant. It also does not clarify whether all relevant records were duly verified before arriving at the conclusion, or whether the certification was based merely on the records furnished by the appellant.

4. In view of the foregoing deficiencies, the Commissioner (Appeals) was 
   

justified in rejecting the said certificate. Although the learned Advocate has relied upon decisions such as Tirumala Bearings (P) Ltd. vs. CCE & Cus. (Appeals), Vishakhapatnam [2016 (335) ELT 145 (Tri.-Bang.)] and Andhra Organics Ltd. vs. CC & ST, Vishakhapatnam [2018 (362) ELT 275 (Tri.-Hyd.)], these judgments clearly lay down that a Chartered Accountant’s certificate can be accepted as evidence only when it is based on proper verification of books of accounts for the relevant period.

5.  Accordingly, while a Chartered Accountant’s certificate is an acceptable 
   

piece of evidence to establish whether the incidence of duty has been passed on or not, the same must be based on independent and thorough scrutiny of relevant records by the Chartered Accountant, and not merely on the basis of data provided by the appellant.

passed on or not, the same must be based on independent and thorough scrutiny of relevant records by the Chartered Accountant, and not merely on the basis of data provided by the appellant.

6. To cure the above defects, the appellant is afforded one more 
   

opportunity to produce a proper and comprehensive certificate before the Commissioner (Appeals), duly supported by verification of relevant records. The matter is, therefore, remanded to the Commissioner (Appeals) for this limited purpose. Upon submission of the requisite evidence, the Commissioner (Appeals) shall examine the same and pass a reasoned order within 30 days from the date of such submission.

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7.     The appeal is allowed by way of remand. 
   

(Dictated and pronounced in the open court)

(SOMESH ARORA) MEMBER ( JUDICIAL ) Bharvi