SAD Refund Mechanism - Why not simplify it further?
AFTER loads of clarifications and circulars both by the CBEC and DGFT, it appears that the SAD refunds have gained some pace and momentum. While everything seemed to be hunky dory, it appears a new problem has cropped up.
It may be noted that in cases where SAD is paid by using Duty Credit Scrips (DEPB,FMS,VKUY etc), the refund is allowed by way of re-credit to the same scrip and that too by the CLA/ZDGFT concerned who has originally issued the scrips.
Imagine if these scrips are purchased from the market and used for paying duties. The Original Scrips could have been issued from any of the Zonal Offices all over India . For re-crediting to the same scrips, the assessee has to approach the ZDGFT's concerned, that too within three months from the date of issue of such credit certificates. This would only involve considerable time, apart from unwarranted transaction costs and not to speak of inordinate delays.
Instead, CBEC should allow the Credit Certificate itself for paying customs duties instead of the existing circuitous procedure which is unnecessarily delaying the fruits of refund. It will save a lot of time and energy for the assessees and reduce bureaucratic tape to that extent.