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

[PAWAN KUMAR]

As per my view, in the circular No.06/2008-Customs dated 28.04.2008 (Para 4.1), it has been clearly prescribed that claim can be filed upto one year from the date of payment of duty, Therefore ensure the filing of refund claim within one year limit.

AI Summary

Time limit for SAD refund claims: file within one year from duty payment to avoid recovery notices. Customs practice yields recovery notices when 4% SAD refunds are granted though refund applications or rectifications were submitted after the one year limitation. Circular No.06/2008 Customs (para 4.1) prescribes that refund claims must be filed within one year from the date of payment of duty; therefore, refund claims and any rectifications should be completed within that one year period to avoid audit initiated recovery.