Customs duty refund against wrong calculation
This query is : Resolved
11 February 2015
dear Expert
we have made wrong export invoice & as per invoice value buyer team paid customs duty and buyer deducted our payment due to wrong calculation, now what is the procedure for getting customs refund.
invoice has prepared to wrong rate
qty rate bill amt customs paid
150000 5.941 891236 89124
invoice should be prepare below rate
CORECT RATE
qty rate bill amt customs paid
150000 3.71 556500 55650
thanks in advance
we have made wrong export invoice & as per invoice value buyer team paid customs duty and buyer deducted our payment due to wrong calculation, now what is the procedure for getting customs refund.
invoice has prepared to wrong rate
qty rate bill amt customs paid
150000 5.941 891236 89124
invoice should be prepare below rate
CORECT RATE
qty rate bill amt customs paid
150000 3.71 556500 55650
thanks in advance
13 February 2015
In terms of paragraph 2 (d) of customs notification no. 102/2007 dated 14
September 2007 as amended, goods imported into India for subsequent sale
are exempted from whole of the additional duty of customs provided the
importer on sale of the said goods pays appropriate sales tax or value addedtax in addition to all duties including the said additional duty of customs at the
time of importation of the goods. A claim for refund of the additional duty of
customs paid could be made before the expiry of one year from the date of
payment of duty. Further, Central Board of Excise & Customs (Board) in their
circular no.6/2008 dated 28 April 2008 prescribed the procedures to be
adopted for refund of additional duty of customs paid under notification
102/2007-cus. The procedure provides that the unsold stocks would not be
eligible for the refund of such additional customs duty.
M/s Leaf Trading Company, Chennai, engaged in the trading of mobile
phones, had filed a claim (April 2010) for refund of additional duty of customs
amounting to ` 1.71 crore in respect of imports made under 46 Bills of entry
(BEs) during the period April 2009 to February 2010. Refund of additional
duty of customs of ` 1.70 crore was granted (June 2010) after disallowing a
claim of ` 0.60 lakh in respect of one BE pertaining to Chennai (Sea),
Commissionerate.
Audit noticed from the Certificates furnished by the Chartered Accountant and
Assistant Commissioner (Commercial Taxes) that out of the 45 BEs where
refund was granted, in 13 cases refund of ` 60.73 lakh was granted on the
goods which were sold on the date of imports, in nine cases refund of
` 36.67 lakh was granted on the goods which were sold prior to the date of
imports/payment of TR6 Challan/Out of Charge, in one case refund of
` 2.59 lakh was granted where no sale had taken place and in 16 cases refund
of ` 41.14 lakh was granted where Sales Tax/Value Added Tax was not paid
at the time of claim of refund. It was apparent that the goods sold prior to the
date of import/payment of duty against the invoices were not the goods
actually imported against the respective BEs and the importer was not eligible
for refund of additional duty of customs. It was further observed from the
certificate given by the Assistant Commissioner of Commercial Tax
confirming the payment of VAT for the sales made by the importer during the
period from April 2009 to February 2010 that as against the total VAT payable
of ` 133.13 lakh, an amount of ` 43.23 lakh remained ‘unpaid’ till the date of
filing of the claim. Thus, the condition stipulated in paragraph 2 (d) of the
aforesaid notification dated 14 September 2007 had not been fulfilled.
Further, the department in the earlier occasions had disallowed the claim in
respect of sales made on the date of import/payment of duty. Hence, claim of
` 1.41 crore being ineligible should have been disallowed. The omission to
disallow the ineligible claims resulted in excess refund of additional duty of
customs of ` 1.41 crore.
the department issued a demand
notice in September 2010. The department further stated (July 2011) that the
sales invoices were raised either a day or two before filing of BE only after the
goods were confirmed for dispatch by the supplier in order to tide over the
financial difficulty and that the claimant had furnished the bank account to
prove that the VAT amount was paid.
The reply of the department was not acceptable because the notification
provides for exemption from additional duty of customs only for subsequent
sales and not for sales made prior to importation and that the VAT was unpaid
on the date of submission of refund claim.
September 2007 as amended, goods imported into India for subsequent sale
are exempted from whole of the additional duty of customs provided the
importer on sale of the said goods pays appropriate sales tax or value addedtax in addition to all duties including the said additional duty of customs at the
time of importation of the goods. A claim for refund of the additional duty of
customs paid could be made before the expiry of one year from the date of
payment of duty. Further, Central Board of Excise & Customs (Board) in their
circular no.6/2008 dated 28 April 2008 prescribed the procedures to be
adopted for refund of additional duty of customs paid under notification
102/2007-cus. The procedure provides that the unsold stocks would not be
eligible for the refund of such additional customs duty.
M/s Leaf Trading Company, Chennai, engaged in the trading of mobile
phones, had filed a claim (April 2010) for refund of additional duty of customs
amounting to ` 1.71 crore in respect of imports made under 46 Bills of entry
(BEs) during the period April 2009 to February 2010. Refund of additional
duty of customs of ` 1.70 crore was granted (June 2010) after disallowing a
claim of ` 0.60 lakh in respect of one BE pertaining to Chennai (Sea),
Commissionerate.
Audit noticed from the Certificates furnished by the Chartered Accountant and
Assistant Commissioner (Commercial Taxes) that out of the 45 BEs where
refund was granted, in 13 cases refund of ` 60.73 lakh was granted on the
goods which were sold on the date of imports, in nine cases refund of
` 36.67 lakh was granted on the goods which were sold prior to the date of
imports/payment of TR6 Challan/Out of Charge, in one case refund of
` 2.59 lakh was granted where no sale had taken place and in 16 cases refund
of ` 41.14 lakh was granted where Sales Tax/Value Added Tax was not paid
at the time of claim of refund. It was apparent that the goods sold prior to the
date of import/payment of duty against the invoices were not the goods
actually imported against the respective BEs and the importer was not eligible
for refund of additional duty of customs. It was further observed from the
certificate given by the Assistant Commissioner of Commercial Tax
confirming the payment of VAT for the sales made by the importer during the
period from April 2009 to February 2010 that as against the total VAT payable
of ` 133.13 lakh, an amount of ` 43.23 lakh remained ‘unpaid’ till the date of
filing of the claim. Thus, the condition stipulated in paragraph 2 (d) of the
aforesaid notification dated 14 September 2007 had not been fulfilled.
Further, the department in the earlier occasions had disallowed the claim in
respect of sales made on the date of import/payment of duty. Hence, claim of
` 1.41 crore being ineligible should have been disallowed. The omission to
disallow the ineligible claims resulted in excess refund of additional duty of
customs of ` 1.41 crore.
the department issued a demand
notice in September 2010. The department further stated (July 2011) that the
sales invoices were raised either a day or two before filing of BE only after the
goods were confirmed for dispatch by the supplier in order to tide over the
financial difficulty and that the claimant had furnished the bank account to
prove that the VAT amount was paid.
The reply of the department was not acceptable because the notification
provides for exemption from additional duty of customs only for subsequent
sales and not for sales made prior to importation and that the VAT was unpaid
on the date of submission of refund claim.
13 February 2015
sir can you share procedure due to we hve excess paid Rs. 2.5L apx to customs nepal
my simple question is -- we hve prepared invoice higher rate while we shuold be prepare lower rate & custom,s duty paid as per higher rate. the same problam we hve reced after two month whn we hve recd payment to party.
pl share procedure & where we will file application , our local excise office or nepal excise office
ashok
my simple question is -- we hve prepared invoice higher rate while we shuold be prepare lower rate & custom,s duty paid as per higher rate. the same problam we hve reced after two month whn we hve recd payment to party.
pl share procedure & where we will file application , our local excise office or nepal excise office
ashok
14 February 2015
in this regards write a letter in this regards to commissioner custom port which you export in india as well enclosed both invoice shipping bill copy.
after scruitney, chief commissioner discretion will applicable.
regards,
after scruitney, chief commissioner discretion will applicable.
regards,
20 February 2015
can you provide us any notification its help for putting the application
21 February 2015
i had already submit a case for you please check once again
ramesh verma
ramesh verma
23 May 2015
Dear Ramesh,
yet we hve not recd refund while we hve submitted letter General Director of Customs office nepal, we have take rectification letter from Customs office Sonali india, than we hve submitted custaoms office Bhansar Nepal border, after tht two letter already submitted in Customs office Tripureshwar kathmandu but yet no response from nepal , kindly advice us wt sud i du 4 ftr 4 getting refund
advance
Thanks
ashok shukla
yet we hve not recd refund while we hve submitted letter General Director of Customs office nepal, we have take rectification letter from Customs office Sonali india, than we hve submitted custaoms office Bhansar Nepal border, after tht two letter already submitted in Customs office Tripureshwar kathmandu but yet no response from nepal , kindly advice us wt sud i du 4 ftr 4 getting refund
advance
Thanks
ashok shukla
23 May 2015
Dear All Experts,
Our two unit are manufactured in one plot separate -separate building Unit 1 & unit-2 there is no boundary wall & both unit under notification 49/2003, both unit are propriety unit with same owner, But our 1st unit will came in excise shortly.
1- our 1st unit are coming in Excise 01.08.15.
2-our both unit sales tax & cst registration same. we can use same No.?
3-our both unit Service tax registration same.we can use same no. ?
4-we ar paying lease rent signal chq of both unit. in further can I pay single chq from one unit ?????
5-EPF & ESIC registration –we can use same no. ?????
6-we will registration in excise shortly
Kindly advice with proper procedure.
Our two unit are manufactured in one plot separate -separate building Unit 1 & unit-2 there is no boundary wall & both unit under notification 49/2003, both unit are propriety unit with same owner, But our 1st unit will came in excise shortly.
1- our 1st unit are coming in Excise 01.08.15.
2-our both unit sales tax & cst registration same. we can use same No.?
3-our both unit Service tax registration same.we can use same no. ?
4-we ar paying lease rent signal chq of both unit. in further can I pay single chq from one unit ?????
5-EPF & ESIC registration –we can use same no. ?????
6-we will registration in excise shortly
Kindly advice with proper procedure.
23 May 2015
shukla ji,
your first unit are coming in excise purview you can use the same.
you can take sales tax and cst registration of the same place.
you can EPF AND esi registration no. too in the same address and mention in documents no problem.
REGARDS,
your first unit are coming in excise purview you can use the same.
you can take sales tax and cst registration of the same place.
you can EPF AND esi registration no. too in the same address and mention in documents no problem.
REGARDS,
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