Refund of 4% Additional Duty of Customs – CBEC issues further clarifications
Board had earlier issued a Circular 6/2008 on this issue. Please see -29.04.2008 and -05.08.2008
Board has now issued further clarifications.
(i) Time-limit for filing of refund claim : Notification No.93/2008-Customs dated 1.8.2008 was issued fixing a time limit of one year.
(ii) Early processing of refund claims : The jurisdictional Commissioners and Chief Commissioners at respective Custom Houses/zones may ensure that there is no delay in the disposal of the 4% CVD refund claims. In case of refund claim not being disposed of in three months, the matter should be reported to the Board within a fortnight mentioning the reason for delay and any area of doubt which needs to be clarified.
(iii) Sale invoices to be submitted in soft form for claiming refund : Importers could submit the copy of invoices in electronic form (including the form of CD) as prescribed in Information Technology Act, 2000.
(iv) Declaration for non-admission of Cenvat Credit: The request for dispensation of such declaration by certain importers who are not registered with Central Excise authorities and to allow 4% CVD refund to these importers on the basis of their status of registration with Central Excise, as non-registered dealer is not found to be acceptable.
(v) Payment of ST/VAT by cash or input tax credit: Discharge of ST/VAT liability by the importer, through cash or other authorised form of payment to the concerned ST/VAT authority or input tax credit adjustment, could be accepted by Customs field formations for the purpose of fulfillment of the condition in para 2 (d) considering sanction of refund of 4% CVD.
(vi) Submission of original copy of ST/VAT Challan : Keeping in view the difficulties faced in submitting original challans , it has been decided that alternatively, the importers may submit copies of ST/VAT challan or copies of ST/VAT payment document in different forms evidencing payment made to the bank or ST/VAT Department towards ST/VAT along with a certificate from the Chartered Accountant, who either certifies the importer's financial records under the Companies Act, 1956 or any ST/VAT Act of the State Government or the Income Tax Act, 1961, confirming the payment against the aforesaid documents.
(vii) Unjust enrichment and its Certification by Chartered Accountants: Customs field formations shall accept the certificate given only by such a Chartered Accountant who either certifies the importer's financial records under the Companies Act, 1956 or any ST/VAT Act of the State Government or the Income Tax Act, 1961, in order to fulfill the requirement of the condition that the incidence of duty burden has not been passed on by the importer to any other person for the purpose of refund of 4% CVD. A certificate by any other independent Chartered Accountant would not be acceptable for this purpose.
(viii) Consignment Agents: In case of sale of imported goods by importer through consignment agent/stockist , refund of 4% CVD shall be granted by Customs field formations, subject to the condition that the Consignment agent/stockist has been authorised to sell the imported goods in terms of the agreement entered into between the importer and consignment agent/stockist and that each of the sale invoices issued by the consignment agent/ stockist indicates that the sale is made by him on behalf of the importer in the capacity of consignment agent/ stockist.
(ix) Submission of refund claim for part of goods in a consignment: The filing of refund claim for part quantity shall be accepted by the Customs field formations during the same month and such cases need not wait till the end of the one year period.
Board wants the Chief Commissioners to ensure that all pending claims are cleared promptly and Board has noticed the resentment in the trade.
CBEC Circular No. 16/2008-Customs, Dated: October 13, 2008