Dear Sir/Madam,
Re: Refund of unutilised terminal duty in relation to clearances made to EOU under CT-3.
I was surfing the internet when i came across your site. i found that the members responding to the query in respect of the subject matter have apparently made up their mind that such refund is non-existent. The curt advice is to pay duty and claim refund.
I was a bit surprised by the said responses. When an EOU is sending you CT-3, how can you pay duty of your own volition? Isn’t it issued for procuring goods without payment of duty? Moreover, I see no reason why refunds cannot be sanctioned in such cases. Would someone care to throw light on the various arguments which are detrimental to getting refund in such cases?
Rule 5 clearly allows refund for the unutilised terminal duty for clearances made for the purpose of exports - not necessarily export by the manufacturer directly to the Importer under ARE-1 (as per first condition of Rule 5) as clearances made to EOU also amount to export ARE-3 (the second condition). In these circumstances i am at a loss to understand as to why refund cannot be claimed, and in fact received, from the Department for the terminal duty element remaining unutilised, since such amount remains unutilised only because of the rules framed by the law makers to clear the goods to EOUs against CT-3 without payment of duty. I am of the opinion that the respective rules were not framed to facilitate impoverishing one person and enriching another.
I do not intend to offend anyone nor do i claim to be an authority on the topic. My aim is only to elicit various objections that may prevent an assessee from getting his dues/ provoke alternate solutions.
All concerned are humbly requested to respond.
Regards,
D. R. Pandit
CAclubindia
