Refunds :: Procedure
PROCEDURE
A. GENERAL REFUND
Refund Application
CBEC has
prescribed a format for applying refund and connected documents and
declaration.
Required Documents
for processing of refund claims
1. Refund Application (Part-A, B & C) as
per Public Notice No.91/95 dated 06.06.95 and proper proforma
with declaration
2.
Duplicate Bill of Entry (Importer’s
Original Copy) with copies of invoice and Bills of Lading
3. Original TR-6 challan
for payment of Customs
duty.
4. Calculation / Worksheet
5. Non availment
CENVAT credit from the concerned Central Excise Authorities wherever required.
6. Order of reassessment in cases where the
original assessment has been challenged to qualify for refund. Order of Commissioner
(Appeal),
7. Original Chartered Accountant Certificate
for not passing on the burden to others
8. All relevant documents to substantiate
their claim for “Unjust enrichment” like Balance Sheet, Schedule etc
Processing of Claims
The refund claims are covered
under Section 27 of Customs Act, 1962, which dwells in detail as to how the
refund claims are to be considered for sanctioning to the claimants.
The Important points
for considering the sanction of refund
I. Limitation
This point taken care of application of section which
mandates that every refund claim has to be filed within 06 months from the date
of payment. Refund Claims received after
the statutory period of 06 months are not entertained as it is barred by
limitation.
II. Eligibility
The eligibility of the refund of
an assessed document is studied whether the assessed documents is re-assessed
for claiming the benefit of notification, different rate of duties, revising
the valuation, changing the classification and revising the duty calculation.
III. Scrutiny of
claims with respect to the issue of unjust enrichment
As per the judgement
of the Hon’ble Supreme Court in the case of Sahkari Khand Udyog
Vs Collector of Central Excise 2005(181) ELT 328 (SC) on the issue of unjust
enrichment, all the refund claims have to be studied from the point of view
whether the provisions of unjust enrichment get attracted. Further, as per
Section 27, 28(c) & 28(d), the Importer has to prove that duty burden has
not been passed on to any customer/others either directly or indirectly and the
onus is on the importer/claimant in this case.
B. REFUND OF SAD
Organisational Structure in JNCH for SAD refunds
To
streamline the SAD refund sanction, JNCH has created a Central Refund Cell. In view of the substantial work load the cell
is further expanded by bifurcating to handle the claim pertaining to the groups
mentioned against as conveyed vide PN No.3/2009 dated 29.01.2009.
CRC IIA : Gr.I to Gr.III
CRC IIB : Gr.IV to VI
Claims pertaining to Group 7B, 7D, 7G, 7H, 7I and 7R would
be handled by the respective section depending upon the chapter under which the
goods are classifiable.
Refund Application
CBEC has
prescribed a format for applying SAD refund and connected documents and
declaration. These are as under
Required Documents
for 4% SAD refund
1. Refund Application (Part-A, B & C) as
per Public Notice No.91/95 dated 06.06.95 and proper proforma
with declaration
2. Duplicate Bill of Entry (Importer’s
Original Copy) with copies of invoice and Bills of
Lading
3. Original TR-6 challan
for payment of Customs
duty.
4. Original Sales Invoices, alongwith list containing Invoice No., Date, Amount of ST/VAT paid on imported goods for which Refund is
claimed.
5. Calculation / Worksheet (Annexure-A) as per Public Notice
No.43/2008 dated 06.06.2008
6. Self Declaration (Annexure-B) as per Public Notice
No.43/2008 dated 06.06.2008
7. All original challans
evidencing payment of Sales Tax /VAT with detail of invoices-(Annexure-C) as
per Public Notice No.43/2008 dated 06.06.2008
8. Original Chartered Accountant Certificate
(Annexure-D) as per Public Notice No.43/2008 dated 06.06.2008 and 04/2009 dated
02.02.2009.
9. All relevant documents to substantiate
their claim for “Unjust enrichment”.
10. All documents as per Public Notice
No.40/2008, 43/2008, and 04/2009 as applicable
How to apply
The refund
application has to be filed within one year from the date of payment of Customs
duty i.e. within one year of TR 6 Challan date. Only one refund application for one importer
in a month is permitted. The application
filled in all respects has to be submitted to TA/CRC-II of JNCH and obtain a
dated acknowledgement.
Procedure for refund
The
application form, the annexures and procedures are
enumerated in PN No.40/08 and 43/08.
Processing
The TA/STA of
CRC IIA/B receives the refund application and registers the refund claim and
allots one unique number for the same.
He submits the refund file on the same/subsequent day to AC for his
perusal. After the AC/CRC, signs as a
token of having seen the refund claim, the refund claim is scrutinized by the
STA/EO for any deficiency of documents.
If they notice any deficiency, the deficiency memo is issued.
If the
refund application is in order, the same is taken up for processing as per the
turn. Refunds amounts of less than Rs.50,000/- are processed by the EO and other claims of refund
amount more than 50,000/-are processed by the AO/Supdt.(P). They will prepare the brief facts and submit
the same to AC for approval. AC will
scrutinize the submitted documents and approve the brief facts, if everything
is in order. Otherwise necessary query will be raised for clarification. Once the AC approves the brief facts, O-I-O number is obtained
and O-I-O is issued. Then NOC from
Groups/other sections is obtained. Then
Refund order is prepared by AO/Superintendent and issued to party for signature
verification/bank endorsement. If the
refund amount is more than Rs. 5 lakhs then file is
forwarded to audit section for pre-audit.
After receipt of file from audit, file is forwarded to CAO for
preparation of cheque. CAO will verify non payment of any refund
against the said B’s/E and also verifies the genuineness of TR6 Challans and prepares the cheque,
if everything is in order. Then the cheque is handed over to the authorized representative of
the Importer