Claim for refund of customs duty paid under MEIS

[MANOHARAN ARUMUGAM]

Sir,

I have filed a prior BE and paid BCD under MEIS. SWS & IGST alone paid in cash. However, due to unforeseen circumstances, the shipper has cancelled the shipment. I have filed application for refund of entire duty since the cargo physically not landed its destination. Now, refund section says that they cannot refund BCD debited under MEIS and they will pass order only for IGST & SWS paid in cash. Can experts clarify how can I get the refund which was debited from the MEIS? Is there any Notification or case laws are there?

Thanks/AManoharan

[KASTURI SETHI]

Refund by way of re-credit under MEIS scheme cannot be denied.

[MANOHARAN ARUMUGAM]

Dear sir,

Thanks for your clarification. I presume, what you mean is re-credit by JDGFT who has issued the incentive scrip. However, in this case, still I have my own doubt as follows;

1. When the Basic Duty has been already debited by customs from MEIS, how customs can re-credit? This is what customs has raised objection.

2. When customs department has already realized the customs duty by debiting from MEIS, who is the competent authority to issue re-credit? Is it the customs or DGFT and on what basis?

3. Having realized the customs duty by debiting from the incentive scrip, why customs could not refund?

Pl. enlighten me.

Thanks/A.Manoharan

AI Summary

MEIS re credit entitlement: re credit of customs duty debited from incentive scrip sought after shipment cancellation. Claim concerns refund where Basic Customs Duty was debited against an MEIS incentive scrip and IGST and SWS paid in cash; customs proposes refund only of cash-paid components while denying refund of BCD debited from the scrip, prompting questions whether re-credit under MEIS must be issued and whether customs or DGFT is the competent authority and on what legal basis.