Export – Refund of Unutilised Credit – Adhere to time limits - No Mate Receipt – CBEC
IT is easier for an elephant to pass through the eye of a needle than a refund claim to pass through layers of Central Excise officers. Whatever the Board implores, the field is determined to ensure that no refunds shall be given. Board has repeatedly requested/directed/implored/pleaded with the field officers to be kind enough to consider following Board's instructions and grant refunds. Refund is a policy of the Government and Commissioners are expected to implement the policy of the Government in letter and spirit – but the refrain in the field is 'the Board may say so many things, but you grant refund at your peril'
Blatant disobedience of the Board is an accepted favourite pastime in the field and every officer knows that he can with impunity disobey the Board and the only remedy for the Board is to issue instructions and more instructions – which are most of the time not read and if at all read, are ignored with contempt. And the poor Board simply smiles in glorious isolation.
Recently the Board has issued another instruction on this issue.
Trade associations have represented that in a large number of cases involving refund of input credit to manufacturers under Rule 5 of CENVAT Credit Rules, 2004, there is a delay in sanctioning of refund by the Central Excise field formations. It has also been represented that many field formations are insisting on submission of mate receipt as a proof for actual export before granting rebate on export goods.
Board clarifies that originally the mate receipt was prescribed as a document to be filed along with the rebate claim, only to facilitate the exporters who are unable to produce the Transference Copy (TR) of the Shipping Bill from the Port of Shipment within 30 days of the Let Export Order (LEO). Board directs that the submission of Mate Receipt should not be insisted upon in case the Transference Copy has been received within 30 days.
Board reiterates that after preliminary scrutiny is completed, the refund/rebate sanctioning authority is required to sanction 80% of the rebate claimed within 15 days of filing of the claim provided the requirement of Notification no. dated 14.3.2006 are complied with. The balance amount is to be paid after completion of the verification and other formalities in the prescribed manner within 45 days from the date of filing of the claim.
Board requests compliance including those relating to timelines in letter and spirit. Unless the Board proves effectively that it will not tolerate such blatant disobedience, Board's letters and instructions will not have any meaning and worth – they may as well stop issuing instructions which are anyway not followed.
Please, please Commissioners – you have a duty to obey the Board!
And as usual, the Board is shy of making such important communications public. These instructions are contained in a letter from the Board to the Chief Commissioners and Commissioners. We will continue our efforts to bring such communications into the public domain.
CBEC F.No. 267/72/2008-CX.8 (Pt.III) dated August 04, 2010