Rebate under Notification 41/2012 ST dated 29.06.2012

[Hariharan Sundaram]

Sir, We have filed a refund claim under Para 3 of the Notification 41/2012 ST (document based rebate). The rebate amount claimed by us is more than the rebate amount as per Para 2 of the said notification. The department has rejected the same on the ground that as per condition specified under Para 1(c) of the notification we have not fulfilled condition to the extent that the difference between rebate as per paragraph 2 and paragraph 3 is less than twenty per cent of the rebate available under the procedure specified in paragraph 2 since the difference between Para 2 and 3 is in negative. For example, we have filed rebate claim for ₹ 5000/- as per Para 3 and as per Para 2, the rebate is 3000/-. The department claim is ₹ 3000 - ₹ 5000 is -2000/- (negative number ) Kindly guide us whether the department stand is correct or not? pl help me with any orders, clarifications board circulars case law on the issue

[Hariharan Sundaram]

Dear experts pl clarify my above doubt. Nobody is answering so far. Kindly help me out of the issue.

[TAMAN GILL]

The department calculation seems wrong because as per condition specified under Para 1(c) of the notification Notification 41/2012 ST. For e.g.:- Rebate claim you filed=Rs.5000(as under para 3), Assume Rebate under Para 2 be ₹ 3000, Difference=5000-3000/3000 i.e. 67%...i.e. more than 20%...hence rebate should be sanctioned by para 3 i.e. through documents.Please clarify with the department authorities i would recommend.

AI Summary

Rebate eligibility under Notification 41/2012: document-based claims must satisfy a prescribed comparative threshold against procedure-based rebate. Rebate under Notification 41/2012 provides both procedure-based and document-based rebate routes, with the document-based route subject to a comparative threshold against the procedure-based rebate; the issue raised is whether a departmental refusal is correct when the document-based claim exceeds the procedure-based amount and the resulting difference is treated as negative under the notification's comparative condition, implicating whether negative or directional differences meet the notification's threshold requirement.