4% SAD REFUND 102/2007 - time limit

[JOSEPH ALEXANDER]

Dear Sir,

In cochin Custom House, the department is issuing recovery notice as Erroneous payment of 4 percent SAD REFUNDED as per notification no.102/2007 dated 14.09.2007 under following reasons.

1) Time limit as per Circular 6/2008 within one year. : the same date of  payment of duty , the refund application  has been filed. Say E.g. duty paid 01/01/2013 and refundedapplication filed on 01/01/2014.In such cases, Department granded the refund and later stage audit dept. issued notice to re-pay the 4 percent SAD refunded as it is filled after expiry of one year.

2) Same kind of situation, where the refund application filled by importer and latter the Department issued letter to importer to  rectify of error found on the refund application and same rectified and refund granted.Now audit dept.issued a recovery notice to repay the amount where ever  the rectification was done after the expiry of the One year time from the date of payment of duty.

kindly give your valuable  feedback

AI Summary

Recovery Notices for Late Refunds of 4% SAD: File Within One Year as per Circular 6/2008 A discussion on a customs forum addresses the issue of recovery notices for the erroneous refund of 4% Special Additional Duty (SAD) under notification 102/2007. The problem arises when refund applications are filed after the one-year limit set by Circular 6/2008. Instances include applications submitted exactly one year after duty payment and cases where rectifications were made post the one-year deadline. A participant advises ensuring refund claims are filed within the stipulated one-year period to avoid recovery notices.