Simplified procedure for sanction of refund of unutilized credit/rebate claims in cases of export.
Board had issued a Circular No. 828/5/2006-CX, dated 20.04.2006, aimed at facilitating quick and regular refund of service tax/excise duty to exporters. The procedure for such provisional sanction of refunds is that 80% of the rebate/refund claimed by select categories of exporters is paid within 15 days from
(a) filing of the rebate claim; or
(b) filing of document evidencing payment of duty including the periodical return, subject to the claim, prima-facie, being found to be complete and in order.
CBEC has received representations from the trade that some field formations are insisting on pre-audit of claims, at the stage of provisional sanction of 80% of the claim.
Board now clarifies that as the provisional amount is sanctioned based on a mere preliminary scrutiny of documents, pre-audit is not required in such cases. As it may not be possible to pre-audit a claim within the period of 15 days, insistence on pre-audit would defeat the very purpose of the scheme. It may also be noted that this simplified procedure for sanction of refund/rebate claims has been restricted to select categories of exporters only, having proven track record.
Therefore, it is hereby clarified that the provisional sanction of 80% of the refund/rebate claims is not required to be subjected to pre-audit. However, the balance amount will be paid only after completion of the verification, and other formalities including pre/post audit within 45 days from the date of filing of the claim.
The Audit scared field formations are advised accordingly.
CBEC's F.No. 268/4/2005-XC-8(Pt) Dated : October 3, 2007