SAD Refunds – Really SAD State of affairs.
The following is the lamenting story of a hapless assessee trying to chase the illusive SAD Refund!
SAD is still SAD even after two circulars clarifying about submission of documents and a clear instructions to clear the refunds within 3 months.
There is information that in Delhi Customs (ICD etc.), even the refund section for this purpose is yet to be identified or constituted. They are simply piling up the applications in the department and in some cases issuing the check list of the documents to be submitted along with the application containing about 13 points including those related to submission of original sales tax challans.
Whereas as per the circular dated 13.10.08 apart from bill of entry and duty payment challan no other documents is required to be submitted in original, even they are asking for the DEPB used at the time of clearance of imported goods to verify the correctness of their own bill of entry and DEPB which is already registered at the port of import and verified before being used for import clearance.
When contacted, an Assistant Commissioner advised to file RTI application to get the answer as to why not even a single claim has been sanctioned.
In MUMBAI customs, in the last one year and not even a single refund has been cleared so far; however the officers have been posted for this work have been changed number of times, and have a ready excuse that he has joined this seat just few days ago.
The website does not even display the claims submitted in Oct/Nov 2007.
It seems the Govt.'s intention is not to give this exemption or say SAD REFUND, but just to issue the notification and circulars and keep the business community happy.
And officers there seem to have a general disregard as to what is the sprit and logic to grant the refund of duty which was imposed in lieu of sales tax.
There should be a one line guideline that if the imported goods have been sold on payment of VAT/Sales Tax and on the invoice this has been declared that no credit of SAD has been passed on, the refund should be granted immediately.
What is the use of every time submitting the same balance sheet (made for one year) and CA certificate who certifies the books once for a year?. What the customs will do with the original copy of sales invoices which in some cases are in thousands?.
But they have all the rights to demand but not to give the exemption (SAD REFUND)
DDT’s enquiries at other Customs Stations revealed that the story is same everywhere – No REFUND anywhere! A wise Guy even suggested that there should be a separate Refund Department, preferably under the Commerce Ministry!
A Commissioner told DDT yesterday, on condition of not being quoted, “I do all the donkey’s work to collect the Revenue and then somebody walks in with a refund claim to ruin my target attainment”. The Board will simply say, “you have failed to reach your Revenue target”.
There is a saying that money paid to the government is like paint on the wall, you can never get it back!
The Board’s job is not over after issuing notifications and circulars – they should also ensure that the instructions are complied with.
Will the CBEC ask for a report from the field as to how many claims have been received and how many are pending and WHY?
In the banks, they have targets for advances as well as deposits – there should be some such system in the Revenue Departments – fix targets for refunds too and maybe twice the amount of refund paid should be added to the Revenue collected for determining the target achieved by each officer. The Babu should be made to show as much anxiety in refund as in Demand! Government is not a third rate business concern out to make a profit – it is performing a sovereign function of collecting taxes – and the correct tax should be collected – NOT A PENNY MORE, NOT A PENNY LESS!