Refund of sad - circular no. circular no. 27/2010-customs,

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Davindar Singh (Querist)
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28 December 2012 Dear Sir,

I need a clarification regarding Refund of 4% SAD scheme in reference to Circular No.10/2012-Customs dated 29.03.2012 wherein as per para 4 it is mentioned that

“Board also reiterates Para 8 of Board’s Circular No. 27/2010-Customs, dated 13-08-2010 wherein it was mentioned that in the interest of ensuring expeditious grant of refund of 4% SAD, the importers may be advised to make the initial payment of 4% CVD in cash.”

DGFT has also informed that no re-crediting shall be done if such payment is made by means of scrips. In other words, in future exporters should pay SAD component in cash if they want a refund.

Please clarify said ‘in future’ word is applicable from which date whether it is from 13.08.2010 with reference to circular no 27/2010
or
from 29.03.2012 as per Circular No. 10/2012.

As we had paid custom duty through incentive scrip against import after 2010, whether we shall be entitled for 4% SAD refund through re-credit or not.

Thanks & Regards,

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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29 December 2012 davinder ji,

supersede this old notifcation and public in this case it is updation :

Circular No.10/2012-Customs

F.No.401/16/2012-Cus.III

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise and Customs

North Block, Room No. 253-A,

New Delhi, the 29th March 2012.

To,

All Chief Commissioners of Customs/Customs (Prev.),

All Chief Commissioners of Customs & Central Excise,

All Commissioners of Customs/Customs (Prev.),

All Commissioners of Customs & Central Excise.

Subject:- Refund of 4% CVD (SAD)-Extension of time upto 30th June 2012, for using re-credited 4% CVD (SAD) amount in DEPB-Regarding.

Sir / Madam,

Your kind attention is invited to the Circular No.02/2012-Customs, dated 16-02-2012, regarding procedure on refund of 4% CVD (SAD). The above Circular provides the facility of manual filing of Bill of Entry for utilizing the amount of re-credited 4% CVD refunds (SAD) for payment of duty in case of re-credited DEPB/ Reward Scheme scrips upto 31-03-2012.

2. The matter has been examined in consultation with Director General of Foreign Trade (DGFT) and it has been decided to extend time limit for using re-credited DEPB scrips/ Reward Scheme scrips in case of 4% CVD (SAD) upto 30-06-2012.

3. Board also directs all Chief Commissioner of Customs to ensure that all pending application for refund of 4% SAD paid through DEPB/reward scrips are disposed of by 30-04-2012. The Chief Commissioner may constitute a special team to liquidate these refund claims. The report in this regard should be sent to Board by 04-05-2012.

4. Board also reiterates Para 8 of Board’s Circular No. 27/2010-Customs, dated 13-08-2010 wherein it was mentioned that in the interest of ensuring expeditious grant of refund of 4% SAD, the importers may be advised to make the initial payment of 4% CVD in cash. DGFT has also informed that no re-crediting shall be done if such payment is made by means of scrips. In other words, in future exporters should pay SAD component in cash if they want a refund.

5. A suitable Public Notice and Standing Order may be issued for the guidance of the trade and staff.

Yours faithfully,

(Vikas)

Under Secretary (Customs-III/VI)