01 July 2010
Should the SADC (special additional duty) refund to be claimed within one year of import and payment of duty ? or can it be claimed anytime after the import is made and duty is paid(i.e., even after one year) Kindly clarify me with the relevant provisions.
Taking into account the original notification and the latest amendments, the following procedure is to be adopted for claiming refund of SAD of 4% under the Customs Act: 1. Any refund claim is to be submitted within one year from the date of payment of duty; 2. Unsold stocks will not be eligible for refund; 3. Filing of refund claim for a part quantity in a bill of entry shall not be allowed except when this is necessary at the end of the one year period; 4. There would be a single refund claim in respect of one importer in a month irrespective of the number of Bills of Entry (B/Es) processed by the respective Commissionerate; 5. In order to ensure sanction of refund properly, it is clarified that the document evidencing payment of ST/VAT (in original) duly issued by or acknowledged by the concerned ST/VAT authorities shall be submitted by the importer; 6. A certificate from the statutory auditor / Chartered Accountant, who certifies the importer’s annual financial accounts under the Companies Act or any statute, correlating the payment of ST/VAT on the imported goods (in respect of which refund is claimed) with the invoices of sale, would be required along with the original tax / duty payment documents as proof of payment of appropriate ST/VAT; 7. A certificate from the statutory auditor / Chartered Accountant who certifies the annual accounts of the importer, that the burden of 4% CVD has not been passed on by the importer to the buyer and to fulfill the requirement of unjust enrichment; 8. In addition to the aforesaid the importer shall also make a self-declaration along with the refund claim to the effect that he has not passed on the incidence of 4% CVD to any other person; 9. It is clarified that a stamp on the invoice (to state that no CENVAT Credit is admissible) should suffice for the purpose of para 2 (b) of the said notification; 10. The importers to submit the copy of invoices in electronic form (including the form of CD);
03 July 2010
CAn a Chartered accountant other than the statutory auditor of the firm (which is claiming refund), give the above required certificate for claiming the above SADC refund?
THE CUSTOM CIRCULAR NO.:-06/2008 DTD. 28.04.2008 SAYS
IN THE NOTIFICATION NO.102/2007-CUSTOMS DATED 14.9.2007, NO SPECIFIC TIME LIMIT HAS BEEN PRESCRIBED FOR FILING A REFUND APPLICATION. UNDER THE CIRCUMSTANCES, A DOUBT HAS BEEN EXPRESSED THAT WHETHER THE NORMAL TIME-LIMIT OF SIX MONTHS PRESCRIBED IN SECTION 27 OF THE CUSTOMS ACT, WOULD APPLY. IN THE ABSENCE OF SPECIFIC PROVISION OF SECTION 27 BEING MADE APPLICABLE IN THE SAID NOTIFICATION, THE TIME LIMIT PRESCRIBED IN THIS SECTION WOULD NOT BE AUTOMATICALLY APPLICABLE TO REFUNDS UNDER THE NOTIFICATION. FURTHER, IT WAS ALSO REPRESENTED THAT THE GOODS IMPORTED MAY HAVE TO BE DESPATCHED FOR SALE TO DIFFERENT PARTS OF THE COUNTRY AND THAT THE IMPORTER MAY FIND IT DIFFICULT TO DISPOSE OF THE IMPORTED GOODS AND COMPLETE THE REQUISITE DOCUMENTATION WITHIN THE NORMAL PERIOD OF SIX MONTHS. TAKING INTO ACCOUNT VARIOUS FACTORS, IT HAS BEEN DECIDED TO PERMIT IMPORTERS TO FILE CLAIMS UNDER THE ABOVE EXEMPTION UPTO A PERIOD OF ONE YEAR FROM THE DATE OF PAYMENT OF DUTY. NECESSARY CHANGE IN THE NOTIFICATION IS BEING MADE SO AS TO INCORPORATE A SPECIFIC PROVISION PRESCRIBING MAXIMUM TIME LIMIT OF ONE YEAR FROM THE DATE OF PAYMENT OF DUTY, WITHIN WHICH THE REFUND COULD BE FILED BY ANY PERSON. IT IS ALSO CLARIFIED THAT THE IMPORTERS WOULD BE ENTITLED TO REFUND OF DUTIES ONLY IN RESPECT OF QUANTITIES FOR WHICH THE PRESCRIBED DOCUMENTS ARE MADE AVAILABLE AND THE CLAIMS SUBMITTED WITHIN THE MAXIMUM PRESCRIBED TIME OF ONE YEAR. UNSOLD STOCKS WOULD NOT BE ELIGIBLE FOR REFUNDS.
It is also clarified that only a single claim against a particular Bill of Entry should be permitted to be filed within the maximum time period of one year. Filing of refund claim for a part quantity in a bill of entry shall not be allowed except when this is necessary at the end of the one year period. Further, since the Sales Tax (ST) / Value Added Tax (VAT) is being paid on periodical or monthly basis, even in case of bills of entry where the entire quantity of goods are sold within a month, all such cases shall be consolidated in a single refund claim and filed with the Customs authorities on a monthly basis. In other words, there would be a single refund claim in respect of one importer in a month irrespective of the number of Bills of Entry (B/Es) processed by the respective Commissionerate.
With the extension of time limit and the requirement to file claims on a monthly basis, Board feels that the number of refund claims should be manageable for disposal within the normal period of three months. Further, in the absence of specific provision for payment of interest being made applicable under the said notification, the payment of interest does not arise for these claims. However, Board directs that the field formations shall ensure disposal of all such refund claims under the said notification within the normal period not exceeding three months from the date of receipt.
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14 July 2010
The person who wants the refund is a private limted company. can it get the required ceritficate form a person other than its statutory auditor?
02 August 2010
As per the Circular No. 16/2008-Cus., dated 13-10-2008 provides as follows: -
it is clarified that the Customs field formations shall accept the certificate given only by such a Chartered Accountant who either certifies the importer’s financial records under the Companies Act, 1956 or any ST/VAT Act of the State Government or the Income Tax Act, 1961, in order to fulfil the requirement of the condition that the incidence of duty burden has not been passed on by the importer to any other person for the purpose of refund of 4% CVD. A certificate by any other independent Chartered Accountant would not be acceptable for this purpose.
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