Refund of sad

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 December 2011 We are the importer of electronic mobile phones and assesories not having excise registration but we have VAT registration. Normally we pay import duty against DEPB License which we have purchased from the market. DEPB license debited against import duty and again we will get duty credit 4% SAD against same DEPB License which we use again for duty payment.

Now we have received SAD refund order of Rs.5 Lacks from customs. But DGFT or Customs denied to credit the same in the license as DEPB scheme is closed. Hence we will not use/encash this refund order.

Please advise what to do?

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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07 December 2011 Refer To Circular No.6/2009–Customs dated 9.2.2009 extends the facility of similar re-credit to the relevant scrip for disbursing SAD refund in respect of other scrips like Vishesh Krishi and Gram Udyog Yojana (VKGUY), Focus Market Scheme (FMS) and Focus Product Scheme (FPS) also. However, it has been represented by the trade and industry that existing EDI facility does not allow re-credit of the amount of 4% CVD refund sanctioned in respect of these schemes in the relevant scrips and as a result of that, a large number of refund claims are held up in different customs houses. The matter was referred to DGFT for resolving the same.

DGFT have subsequently issued a Public Notice No.38/2009-2014 dated 3.2.2010 and also a Policy Circular No.22/2009-14 dated 3.2.2010 for extending the validity of Duty Credit Scrips. Accordingly, concerned Commissionerates of Customs are required to issue a consolidated certificate indicating total amount sanctioned as refund (4% CVD). As per Public Notice, concerned DGFT / Regional Licensing Authorities (RLA) are required to issue necessary re-credit on the scrip on the basis of consolidated certificate issued by Commissionerate. Policy Circular No.22/2009-14 dated 3.2.2010 issued by DGFT also provides for sending a copy of such duty scrips where re-credit was allowed along with the details of original duty scrips so that the Customs authorities can compare the details before allowing clearance of import consignment against the scrips.

Querist : Anonymous

Querist : Anonymous (Querist)

10 December 2011 Dear Sir,

Thanks for your reply.

As per DGFT Policy Circular No.22/2009-2014 Dt.03.02.2010 Para 3 iv all application of re-credit shall be filled by the applicant within 3 months of issuance of the consolidated certificate (credit note) by the Customs authority. Our Consolidated Certificate issued on 12.09.2011. So re-credit application period will be over on 12.12.2011.

Hence we have sent a letter to DGFT and requested to grant us extension till the re-credit issue resolved by the Jt. Director General of Foreign Trade or Commissioner of Customs.

It is ok or any other steps we need to take in this matter.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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10 December 2011 you are right , but in the era of corruption in my opinion, you must meet to concerned CLERK .

Regards,

Querist : Anonymous

Querist : Anonymous (Querist)

10 December 2011 Ok we will submit hard copy also to the respective DGFT.

If any positive steps taken by government to reslove the matter then please let us inform to all.

Thanks in advance.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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12 December 2011 you can also put up A RTI LETTER IN THIS REGARDS.

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