Refund/ Rebate claims – Board issues fresh instructions
++ Refund claims of above 5 Lakhs to be pre audited by Commissionerate.
++ Refunds less than 5 Lakhs but more than Rs. 50,000 to be post audited in the Commissionerate.
++ For refunds above Rs 50,000, Orders In Original have to be passed and will be reviewed in the Commissionerate.
++ Review proceedings under Section 35E are not required for refunds exceeding Rs. 5 Lakhs as they are pre audited.
++ File to be sent to Commissionerate within a week of sanctioning the refund
++ Commissionerate to finish audit within three months.
Board’s clarifications are bound to bring in some uniformity in procedures all over the country. But this whole concept of pre- audit seems to be against the principles of adjudication. When an Assistant Commissioner passes an order, how can it be previewed by the Commissioner and if the Commissioner raises any objection, is the Assistant Commissioner bound by it?
See CBEC CIRCULAR NO 809/6/2005-CX, Dated: March 1, 2005