On perusal of the notification, it is observed that there are certain conditions which are required to be satisfied for getting refund. On perusal of these conditions it would indicate that time and again reference has been made to “said goods”, which in this context would indicate ‘imported goods’. The documents required also, interalia, requires them to produce documents evidencing payment of appropriate sales tax or VAT as the case may be by the importer “on sale of such imported goods” (emphasis supplied). Therefore, notification is exempting all the goods when they are imported for subsequent sale and subject to following various conditions including payment of VAT in respect of said goods. Therefore, if the wordings used in notification are read conjointly, it would be obvious that the notification is applicable only when the imported goods itself is sold and at the time of said sale appropriate sales tax are also paid. Admittedly, the word “as such” has not been mentioned in the notification, but strict interpretation of this notification having regard to the wordings used would indicate that the exemption is available only when the goods are sold as such and not after certain processing. The circular referred in show cause notice or impugned order has only clarified this position, which is otherwise apparent on plain reading of notification itself. This was in the backdrop of some fraudulent attempt to claim refund by manipulating the facts of the imported goods being sold as such and the modus operandi was brought to the notice of the field formations highlighting that there is distinguished difference in timber
