Credit of Refund of CVD and SAD in case default advance licence

[Sanjay Jha]

We have deposited the BCD, CVD and SAD for regularization of advance license and deposited at port. How we can get the credit or refund and juridiction of refund.

[Alkesh Jani]

Sir,

Please give more information, when it was deposited and any communication was made by you or from department?

Thanks

[DR.MARIAPPAN GOVINDARAJAN]

As told by Shri Alkesh give full details otherwise the advice will be not correct.

[Sanjay Jha]

We had imported certain input raw material under advance authorization before introduction of GST. We are unable to export our goods. So we have paid the duty that we have saved as per old duty structure i.e. BCD, CVD, SAD, Cess. In that case can we get credit or refund of CVD, SAD and if we get refund then where we have file the refund ?

[Alkesh Jani]

Sir,

You can apply for refund of CVD and SAD before Central Excise Authority (Division Office), however, it should be within one year from the date of payment of duty. This was the only reason to request you to furnish the full details.

Thanks

With regards

[Sanjay Jha]

Refund under which provision or section

[Alkesh Jani]

Dear Sanjay,

You can file refund claim under Section 142(3) of CGST Act,2017 read with Section 11B(2) of Central Excise Act,1944.

Thanks,

[Sanjay Jha]

thanks

[MUKUND THAKKAR]

We have deposited the BCD, CVD and SAD for regularization of advance license and deposited at port. How we can get the credit or refund and juridiction of refund.

It is seems that advance obligation has been not full filled by you, that means during the time of Import with out payment of duty. what ever payment made by you for regularization transaction. so there is no question of refund. it is your cost.

[CSSANJAY MALHOTRA]

Agree with Sh Alkesh.

[subhash kapoor]

File writ petition in the High court and the same issue Punjab and Haryana High Court have issue notice of motion to the Union of

[Rangaswamy R]

This is with reference to the reply posted by Sri Subhash Kapoor.

Sir, can you please throw some more light on the writ petition filed before Punjab & Haryana High Court in the matter of refund of CVD and SAdD?

Regards,

Rangaswamy

All respected sir,

refund is allowed if goods are exported. In this case capital goods are imported as duty free and subsequently paid the duty after regularization of License. But no export is made, then how the refund is allowed?

[SHARAN RAYAPROL]

i have seen the comments form the Ld members. I have seen the transitional provisions, as well as the new refund provisions. there is no provision for availing such credit in TRAN1 (assuming credit to be taken before 30-6-2020 as per delhi high court), and also there is no provision for filing refund claim under GST. so, you have to book it as a cost only. you can also capitalise the same, including CVD+SAD, and put it in your capital account.

r.subramanya, advocate

[CSSANJAY MALHOTRA]

Below stated are case laws wherein Refund of CVD and SAD has been granted in relation to trailing issue.

(i) Sudarshan Chemical Industries Limited Vs Assistant Commissioner, Division-II & III, CGST & CX, Raigad Commissionerate = 2015 (11) TMI 463 - CESTAT MUMBAI.

(ii) R.R. Kabel limited Vadodara Vs Assistant Commissioner, Vadodara

(iii) Medispray Laboratory Pvt. Ltd Vs Assistant Commissioner, Panaji, Goa.

[Alkesh Jani]

Shri

Please also go through Section 173 and Section 174 of CGST Act,2017. Please also refer Section 142(3) which mentions of "before, on or after" and specifically mentions of Section 11(B)(2) of Central Excise Act,1944.

Thanks

[SHARAN RAYAPROL]

The identical refund is rejected in the case cited in 2020 (2) TMI 353 - CESTAT CHENNAI - M/S. SERVO PACKAGING LIMITED VERSUS COMMISSIONER OF G.S.T. AND CENTRAL EXCISE, PUDUCHERRY.

[Alkesh Jani]

Shri,

In each case the fact and circumstances are different, In my case, one refund of ₹ 8.5 lakhs (of re-import) was sanctioned by the Commissioner (appeals), Ahmedabad and Also refund was allowed by Commissioner (A) Pune in another case.

Moreover, one case, for refund of ₹ 2.4 lakhs was rejected by Commr(A), Ahmedabad and appeal to CESTAT is pending.

Please feel free to contact me for the copies.

[Rangaswamy R]

Dear Malhotra ji,

You have quoted three case laws wherein refund of CVD and SAdD paid towards nonfulfillment of EO under AA scheme was permitted...are these cases reported in ELT or TIOL or TMI? Will you please quote the citations?

AI Summary

Refund of CVD and SAD: eligibility depends on export obligation fulfilment and must be claimed before central excise within time limits.
Whether deposit of Basic Customs Duty, Countervailing Duty and Special Additional Duty paid to regularize imports under an Advance Authorization after non fulfilment of export obligations can be recovered as refund or credited; refund claims are pursued before the Central Excise division office, are time limited from the date of payment, and are constrained by export linked eligibility and the absence of explicit transitional GST credit routes, resulting in divergent administrative and judicial outcomes.