Tsunami Exemption – certificate after completion
While the houses constructed for the Tsunami victims must have been washed off in the present floods in Tamil Nadu, the impossible notification has been amended possibly because nobody could claim the exemption. In DDT 182 - 18 08 2005 , it was commented,
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.
The notification required
c) The approved construction agency shall file a claim for refund of the said duties paid on the said goods procured and utilized in construction of such houses by it on a quarterly basis, along with a consumption certificate for the said goods from a Chartered Engineer countersigned by the concerned District Collector or Sub-Divisional Magistrate and completion certificate from the District Collector to the jurisdictional excise officer, within sixty days from the end of the relevant quarter, and such period may be extended by the jurisdictional excise officer by another sixty days:
Now it is amended to stipulate that the refund claim can be claimed on a quarterly basis with a self certified consumption certificate. A great relief indeed! But wait; if you can fight Tsunami, you should be able to face government regulations. Now the certificate from the District Collector and Chartered Engineer are not required on a quarterly basis but can be filed after completion. Wait again; more is to come. The refund will be given only after the completion certificate from the District Collector and Chartered Engineer is produced. After the project is completed, don’t wind up your site; Do stay on there, get those certificates and claim that refund from excise or the better option is you can donate that refund to the Tsunami Relief Fund and be happy!
NOTIFICATION NO. , Dated: November 29, 2005