Disposal of pending 4% SAD Refund Claims

Circular No. ES/158/2019-20                                 3rd October, 2019

To: Members of the Council

Sub.: Disposal of pending 4% SAD Refund Claims

Dear Member,

We would like to inform you that Air Cargo Complex (Sahar) has issued Public Notice No. 24/2019 dated 30th September, 2019 regarding disposal of pending 4% SAD Refund Claims.

Your kind attention is invited to the Notification No. 93/2008–Customs dated 1st August, 2008 which states that the importer shall file a claim for refund of the said additional duty of customs paid on the imported goods with the jurisdictional Customs Officer before the expiry of one year from the payment of the said additional duty of Customs. The levy of 4% SAD has since been discontinued after implementation of GST w.e.f. 1st July, 2017. Therefore, as per the Notification mentioned above and Section 27(1) of the Customs Act, 1962, the importer was required to file the application for the refund of SAD 4% till 30th June, 2018.

It has been noticed by the Customs that–

  • A number of refund claims filed prior to the said date were incomplete in different respect and accordingly, this section had issued Deficiency Memos (DM) requesting for removal of this informed deficiency.

  • Also, in case no reply was received within one month, the cases will be decided on the basis of available records.

  • In many cases, the deficiency memos have been returned undelivered by the postal department and in many orders, no reply has been received, despite the non–return of the deficiency memos. 

As part of administrative diligence and responsive tax administration, this legacy issue of SAD refund claims should be completed at the earliest.

Now, Customs has advised importers/ claimants who had filed their SAD refund claims within the stipulated period and have not received the SAD refund to submit the following –

Ø  Original copy of the dated acknowledgement of the submission of their claim and Deficiency Memos, and

Ø  Reply thereto before 31st October,2019 without fail to the Assistant Commissioner of Customs, SAD Refund Section, Commissionerate General, Air Cargo Complex, Sahar, Mumbai.

Please note the following–

  • All efforts will be made by Customs to process the SAD refund claims so received within the aforesaid stipulated date through a special drive.

  • The duration of the said drive shall be decided upon quantification of the pending refund claims and the same shall be communicated through a Public Notice.

  • If no representation / submission is received on or before 31st October, 2019, the cases with skeletal information, incomplete for due processing, shall be disposed off in a summary manner, without any further reference.

Members may kindly make a note of the above and  do the needful at the earliest.

Thanking you,

Yours faithfully,


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