Excise paid by Software company

This query is : Resolved

varun gupta (Querist)
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15 May 2009 Hi,

A company dealing in export of IT services purchases some computers or other items on which it pays Excise duty. Can this excise amt be taken as input credit and refund be claimed for the amt along with refund claim of Excess of service tax input credit over service tax output liability?

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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19 May 2009 Yes the central excise duty on computers as well as other office equipment is available as credit and it is available as refund under Rule 5 of CCR or rebate under Not 11/2005 or 12/2005. Depending on the services your refund could be for input services used for taxable services liable to ST from 16.5.2008 iof in nature of BOP then from 2005.

varun gupta

varun gupta (Querist)
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19 May 2009 Will any custom duty or additonal duty paid be also eligible for refund?

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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21 July 2024 Refunds for customs duty or additional duty (CVD) paid can be claimed under certain circumstances. Here’s a breakdown of the refund eligibility for these duties:

1. **Customs Duty Refund Eligibility:**
- Customs duty is levied on goods imported into India. Refunds for customs duty can be claimed in the following scenarios:
- **Excess Payment:** If more duty has been paid than what was legally due.
- **Import Duty Drawback:** When imported goods are re-exported, the customs duty paid at the time of import can be refunded partially or fully under the Duty Drawback Scheme.
- **Export Promotion Schemes:** Under schemes like Advance Authorization, Duty Free Import Authorization (DFIA), Export Promotion Capital Goods (EPCG), etc., customs duty paid on imports for export production may be eligible for refund or exemption.
- **Errors and Omissions:** Refund can also be claimed for errors in assessment, classification, valuation, etc., which resulted in excess payment of duty.

2. **Additional Duty (CVD) Refund Eligibility:**
- Countervailing Duty (CVD) is levied on imported goods to counterbalance subsidies provided by the exporting country. Refunds for CVD can be claimed under similar circumstances as customs duty, such as:
- Excess payment or incorrect assessment leading to overpayment.
- Exports under schemes where duty paid goods are re-exported.
- Errors in duty calculation or classification.

3. **Procedure for Claiming Refund:**
- Refund claims for customs duty and CVD are typically filed with the Customs department. The process involves submitting a refund application along with supporting documents like proof of payment, shipping documents, invoices, etc.
- The application is reviewed by Customs authorities, and if found eligible, the refund is processed.

4. **Documentation and Compliance:**
- It’s crucial to maintain accurate records and documentation to support the refund claim. This includes invoices, shipping bills, proof of export (if applicable), and any other relevant documents.
- Compliance with procedural requirements and timelines specified by Customs is essential to ensure the timely processing of refund claims.

In summary, customs duty and additional duty (CVD) paid can be eligible for refund under specific conditions, primarily related to excess payment, exports, and export promotion schemes. It’s advisable to consult with a customs consultant or legal expert to understand the specific requirements and procedures applicable to your situation for claiming refunds effectively.