Customs - Refunds delay worries the Board
Complaints from claimants, condemnation from courts and the liability to pay interest - all good enough reasons for the Board to be concerned. This time it is really the 'concerned' Board!
Now Board wants to
1.ensure expeditious disposal of Customs duty refund applications
2.enhance transparency in refund disbursement
3. bring alertness among the officers
And so wants the field to follow a prescribed procedure:-
Receipt of application:
1.Give a receipt immediately on receipt of the application
2.At this stage make it clear that the application has not been srutinised for its completeness.
3.Give a proper acknowledgement if the application is found complete. Do this within ten days.
4.If any deficiency is found in the application or any document is required by the department, the same shall be informed at this stage of initial scrutiny itself within ten working days of the initial receipt.
5.No piece-meal queries please - all objections in one go.
Processing and disposal:
1. Process the applications on 'first-come-first served' basis
2. If refund is due, pass an order of refund.
3. If the claim is to be rejected, a speaking order has to be given. (Has the Board forgotten Show Cause Notice? Or is it another invitation for litigation?)
4. The order should also contain the findings of adjudicating authority on the documents produced in support of the claim and the basis for determining the amount as either refundable to the claimant or payable to the Consumer Welfare Fund or the claim not being admissible.
Issue of Cheque:
1. Pay the refund within three days of passing the order.
2. Make payment by cheque
3. Send the cheque the claimant or hand it over to him when he visits you. (Why can't it be credited to his account?)
Audit:
1. All applications involving a refund of duty and/or interest of Rs. 5 lakhs or more shall be subjected to pre-audit.
2. Random post audit for refunds below Rs. 50,000/- and compulsory post audit of refunds between 50,000 and 5 Lakhs.
3. Where pre-audit is involved the action should be completed at the earliest so that the disposal of refund applications is not unduly delayed.(what does this mean? Why can't they fix a time limit for this also?)