The Tsunami exemption – limited to cement and steel – refund to NGO
On 5.1.2005, DDT asked, “But where is the Tsunami exemption?” It has finally arrived. Of course you cannot expect government notifications to travel at the speed of Tsunami. The present exemption is applicable only to cement and steel used in construction of houses in the Tsunami affected districts. The exemption works by a system of refund to the NGO/construction agency engaged in the construction activity. This is how it works.
• The approved construction agency shall submit a statement of quantity and value of the goods used in construction of such houses along with documents evidencing payment of duty to the jurisdictional Assistant Commissioner/Deputy Commissioner.
• They should file a refund claim on a quarterly basis, along with a consumption certificate from a Chartered Engineer countersigned by the concerned District Collector or Sub-Divisional Magistrate and completion certificate from the District Collector.
• The jurisdictional excise officer shall, after satisfying himself that the goods have been used for the specified purposes, and on production of documentary evidence about the duty paid on the said goods, sanction the refund claim,
• The refund is restricted to 6% of the cost of construction subject to a maximum of Rs.9000 per house
• The refund under will be given only to the concerned approved construction agency.
• The exemption is applicable only for houses constructed on or after the 1st April, 2005 and on or before 31st July, 2006
The agencies will now find that fighting Tsunami was a far more easy exercise than getting that refund from Central Excise. First of all they have to get hold of all those Central Excise Invoices. Then they have to satisfy the Central Excise officer that the cement and steel have been indeed used in the construction and have documentary proof that the goods have suffered duty.
There seems to be no time limit for the department to grant refund and it is not clear if interest will be paid for delayed refunds. It is almost sure most of the refund claims will be rejected on ground of unjust enrichment! The whole purpose of the notification seems to be denial of the exemption. Should even the Tsunami notification be so complicated? The government failed to give a notification immediately after Tsunami and it should have been left at that instead of issuing complicated notifications.
Notification. No. dated the 17th August, 2005.