CA Tushar Singhania (Asst. Manager Accts & Fin.) (402 Points)
31 October 2012Sir/Madam,
I would like to know the procedure for claiming the refund of ADC charged on import in lieu of VAT. I operate from West Bengal, and could you please direct me to the link from where i would have to download the forms etc.
Thanking you
Tushar Singhania
Rama Krishnan
(MBA)
(571 Points)
Replied 01 November 2012
SUGGEST YOU HIRE A REFUND CONSULTANTS FOR FILING THE REFUNDS IN REQUIRED FORM AND RECOVERY OF THE AMOUNT.
DOCUMENTS REQUIRED FOR CLAIMING REFUND
ALL ORGINAL IMPORT DOCUMENTS ( B/E, TR- 6 CHALLNS, INVOICE , PACKING LIST, B/L,
SALES INVOICE,
VAT PAYMENT PROOF
UNJUST ENRICHMENT CERTIFIATE FROM STATUTORY AUDITERS
THESE ARE SUFFICENT TO CLAIM REFUNDS.
RAMESH KUMAR VERMA
( CS PURSUING )
(43848 Points)
Replied 01 November 2012
Additional duty of Customs (ADC) at 4% is chargeable under Section 5 of Section 3 of Customs Tariff Act, 1975. This ADC is commonly called as SAD and the charging Notification No is 19/2006 Cus dated 01.03.2006. This ADC of 4% is charged to countervail state taxes/VAT.
PROCEDURE
A. GENERAL REFUND
Refund Application
CBEC has prescribed a format for applying refund and connected documents and declaration.
Required Documents for processing of refund claims
1. Refund Application (Part-A, B & C) as per Public Notice No.91/95 dated 06.06.95 and proper proforma with declaration
2. Duplicate Bill of Entry (Importer’s Original Copy) with copies of invoice and Bills of Lading
3. Original TR-6 challan for payment of Customs duty.
4. Calculation / Worksheet
5. Non availment CENVAT credit from the concerned Central Excise Authorities wherever required.
6. Order of reassessment in cases where the original assessment has been challenged to qualify for refund. Order of Commissioner (Appeal), CESTAT/High Court, wherever applicable.
7. Original Chartered Accountant Certificate for not passing on the burden to others
8. All relevant documents to substantiate their claim for “Unjust enrichment” like Balance Sheet, Schedule etc
Processing of Claims
The refund claims are covered under Section 27 of Customs Act, 1962, which dwells in detail as to how the refund claims are to be considered for sanctioning to the claimants.
The Important points for considering the sanction of refund
I. Limitation
This point taken care of application of section which mandates that every refund claim has to be filed within 06 months from the date of payment. Refund Claims received after the statutory period of 06 months are not entertained as it is barred by limitation.
II. Eligibility
The eligibility of the refund of an assessed document is studied whether the assessed documents is re-assessed for claiming the benefit of notification, different rate of duties, revising the valuation, changing the classification and revising the duty calculation.
III. Scrutiny of claims with respect to the issue of unjust enrichment
As per the judgement of the Hon’ble Supreme Court in the case of Sahkari Khand Udyog Vs Collector of Central Excise 2005(181) ELT 328 (SC) on the issue of unjust enrichment, all the refund claims have to be studied from the point of view whether the provisions of unjust enrichment get attracted. Further, as per Section 27, 28(c) & 28(d), the Importer has to prove that duty burden has not been passed on to any customer/others either directly or indirectly and the onus is on the importer/claimant in this case.
B. REFUND OF SAD
Organisational Structure in JNCH for SAD refunds
To streamline the SAD refund sanction, JNCH has created a Central Refund Cell. In view of the substantial work load the cell is further expanded by bifurcating to handle the claim pertaining to the groups mentioned against as conveyed vide PN No.3/2009 dated 29.01.2009.
CRC IIA : Gr.I to Gr.III
CRC IIB : Gr.IV to VI
Claims pertaining to Group 7B, 7D, 7G, 7H, 7I and 7R would be handled by the respective section depending upon the chapter under which the goods are classifiable.
Refund Application
CBEC has prescribed a format for applying SAD refund and connected documents and declaration. These are as under
Required Documents for 4% SAD refund
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1. Refund Application (Part-A, B & C) as per Public Notice No.91/95 dated 06.06.95 and proper proforma with declaration
2. Duplicate Bill of Entry (Importer’s Original Copy) with copies of invoice and Bills of Lading
3. Original TR-6 challan for payment of Customs duty.
4. Original Sales Invoices, alongwith list containing Invoice No., Date, Amount of ST/VAT paid on imported goods for which Refund is claimed.
5. Calculation / Worksheet (Annexure-A) as per Public Notice No.43/2008 dated 06.06.2008
6. Self Declaration (Annexure-B) as per Public Notice No.43/2008 dated 06.06.2008
7. All original challans evidencing payment of Sales Tax /VAT with detail of invoices-(Annexure-C) as per Public Notice No.43/2008 dated 06.06.2008
8. Original Chartered Accountant Certificate (Annexure-D) as per Public Notice No.43/2008 dated 06.06.2008 and 04/2009 dated 02.02.2009.
9. All relevant documents to substantiate their claim for “Unjust enrichment”.
10. All documents as per Public Notice No.40/2008, 43/2008, and 04/2009 as applicable
How to apply
The refund application has to be filed within one year from the date of payment of Customs duty i.e. within one year of TR 6 Challan date. Only one refund application for one importer in a month is permitted. The application filled in all respects has to be submitted to TA/CRC-II of JNCH and obtain a dated acknowledgement.
Procedure for refund
The application form, the annexures and procedures are enumerated in PN No.40/08 and 43/08.
Processing
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The TA/STA of CRC IIA/B receives the refund application and registers the refund claim and allots one unique number for the same. He submits the refund file on the same/subsequent day to AC for his perusal. After the AC/CRC, signs as a token of having seen the refund claim, the refund claim is scrutinized by the STA/EO for any deficiency of documents. If they notice any deficiency, the deficiency memo is issued.
If the refund application is in order, the same is taken up for processing as per the turn. Refunds amounts of less than Rs.50,000/- are processed by the EO and other claims of refund amount more than 50,000/-are processed by the AO/Supdt.(P). They will prepare the brief facts and submit the same to AC for approval. AC will scrutinize the submitted documents and approve the brief facts, if everything is in order. Otherwise necessary query will be raised for clarification. Once the AC approves the brief facts, O-I-O number is obtained and O-I-O is issued. Then NOC from Groups/other sections is obtained. Then Refund order is prepared by AO/Superintendent and issued to party for signature verification/bank endorsement. If the refund amount is more than Rs. 5 lakhs then file is forwarded to audit section for pre-audit. After receipt of file from audit, file is forwarded to CAO for preparation of cheque. CAO will verify non payment of any refund against the said B’s/E and also verifies the genuineness of TR6 Challans and prepares the cheque, if everything is in order. Then the cheque is handed over to the authorized representative of the Importer
for more information :
https://www.chennaicustoms.gov.in/Refunds/Refunds.pdf
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