Need for clear cut clarification from CBEC on refund and recovery of duty paid - Will Board Clarify?
WE received this mail from a concerned netizen.
We would like to bring to your kind notice a small matter which is causing irritation amongst Importers / Exporters, Departmental officers, Appellate Authorities and even perhaps Judicial Forums. The issue is whether the Bill of Entry or Shipping Bill as the case may be should be challenged before
a) A refund application is filed for excess payment of duty
b) A Show Cause Notice is issued for recovery of short levy of duty
c) A Show Cause Notice is issued for recovery of excess payment of duty Drawback arising out of wrong classification.
A number of litigations and cross-litigations exist on the above matter and the funny part is that the Department as well as the importer and exporter are clear on the provisions. However, the problem is that what is clear to the Department is not clear to the Trade and vice versa.
There is a plethora of judicial pronouncements on the subject right from Tribunals to Supreme Court and in many cases conflicting views are expressed. To add fuel to the fire, CBEC issues Circulars accepting the decisions which are favourable to Revenue even if it is pronounced by Tribunal and pretends ignorance and remains silent on issues decided in favour of the Trade, even by the Apex Court. The Board should certainly be above board!!
We request you to kindly use your good offices in prevailing upon CBEC to issue a fresh Circular very clearly and without ambiguity, stating as to the correct legal position and requirement in filing an appeal against a Bill of Entry or Shipping Bill for the situations mentioned above. All the earlier Circulars on the subject can be rescinded and the new Master Circular should contain the view of the Board, which will be binding on all officers under the Board. The situation as of today, on the subject matter, is very confusing and leads to multi interpretations by various quarters concerned. This should not be, for the wise say, that clarity of law is the safety of the citizen.