Refund under export - shipping bills and EGM - refund period issue

yashsr (CA) (2285 Points)

14 August 2023  

In case of refund under export, am I right that shipping bills of the same period can be claimed for the refund only?

Say ABC Ltd. is claiming a refund for the month of March 2023 on 15th May 2023(application date). Now, there are some shipping bills of Jan 2023 and Feb 2023 for which EGMs(Export General Manifests) were not received when the refunds for those months were applied but are now available. Likewise, EGSms of some Shipping bills of March 2023 are not available as on 15th May 2023 but will be available in the next few weeks.


What ABC Ltd does is that it creates a reconciliation like this in its refund application for March 2023:
Value of Shipping bills for March 2023 - Rs.10 crores

Add: Shipping bills for Jan 2023 and Feb 2023 - Rs.4 crores (these are ones which haven't been claimed in refunds for Jan 2023 and Feb 2023 as EGMs were not available then)

Less: Shipping bills March 2023 for which EGMs are not yet available - Rs.3 crores

Net value of Shipping bills for March 2023 month - Rs. 9 crores



Is this practice allowed or is this bad in law? And what is the best way to address this situation? I feel that refunds should be applied for a particular period only when EGMs for that period are available. But if this organization starts this practice from now on, what about refund for shipping bill of period periods which haven't been claimed yet.


How to practically address this problem?