31 May 2012
We are registered under Central Excise. However our final product is exempt from duty. We are purchasing duty paid inputs. We are not taking any credit of the duty paid on inputs/input services. Also we are making advance payments to our suppliers. While scrutinizing the bills for purchase of inputs it has come to our notice that the seller had charged excess amount including excise duty in the bill. Hence, we have raised the debit note to the supplier for the excess amount charged alongwith the excise duty. Seller has accepted to refund the basic amount charged in excess in the bill. However the seller has already deposited the amount of excise duty with the Central Government.
Thus I would like to know whether refund can be claimed by us for the excess duty paid as we have not passed on the incidence of tax to any other person. If refund is applicable then please let me know the procedure for the same!! Can refund of Central Sales Tax be claimed on the aforesaid amount?
01 June 2012
To get refund of excess duty or interest paid, the importers should file a refund application in the prescribed format in duplicate before the Assistant Commissioner of Customs having jurisdiction over the customs port, airport, land customs or customs warehouse where the duty of customs/interest was paid. Such refund claim should be filed within one year from at the date of payment of duty, if the import is made by, any individual for his personal use or by Government or by any educational, research or charitable institution or hospital.
In case of other category of importers, the time limit is six months only.
However, in the case of goods, which are exempt from payment of duty by a special order issued under sub-section (2) of section 25 of the Customs act, 1962 (Ad hoc exemption order), the limitation of one year or six months, as the case may be, shall be computed from the date of issue of such order.
The limitation of time limit of one year or six months shall not apply where any duty was paid ‘under protest’. In the case the imports made (other than an individual for his personal use) excess duty and interest paid is refunded only when such excess duty and interest paid by the importer is not passed on to any other person.
It must be clearly indicated in the refund application the growth on which the refund is claimed with the supporting documents.
Noted that:
As per section 27 A of the Customs Act 1962 if the amount due is not refunded within three months from the date of receipt of the application by the department, interest is payable on such refund amount from the date of expiry of three months of the receipt of the application till the date of refund at the rate of 15 per cent per annum as per notification no. 32/95-Nt (Cus) dated 26.5.95.
Any order passed by the Commissioner (Appeals), Appellate Tribunal or any court against an order of the Assistant Commissioner of Customs shall be deemed to be an order passed under sub-section (2) of section 27 of the Customs Act, 1962 and the interest is accordingly payable.
Also Noted:
If any excess duty is paid on export goods, an application for refund of such duty should be made before the expiry of six months from the date on which the proper officer makes an order for clearance of goods for export. (Section 26 of the Customs act 1962).
01 June 2012
We are neither importer nor exorter of goods. We are clearing goods for home consumption. But we have paid excess duty due to incorrect billing of supplier. Whether we can claim refund for such excess duty paid????
01 June 2012
in the case of goods, which are exempt from payment of duty by a special order issued under sub-section (2) of section 25 of the Customs act, 1962
produce a letter in this regards in concerned excise authority .......
if you are not satisfied from my reply can put up RTI letter to concerned CPIO, EXCISE.
CAclubindia
