Legal Backup for Refund Rejection Based on FIRA Submission

[Deepanshu Garg]

Dear All,

We are currently handling a case where the department has rejected a refund application on the grounds that the assessee submitted copies of Foreign Inward Remittance Advice (FIRA) instead of a Foreign Inward Remittance Certificate (FIRC). An appeal has been filed against this rejection. However, the Commissioner (Appeals) is requesting a strong legal basis for issuing the refund based on FIRA submissions.

Could you please provide any relevant legal precedents, case laws, or authoritative clarifications that support the acceptance of FIRA in place of FIRC for refund purposes? Your guidance on this matter would be greatly appreciated.

Thank you for your assistance.

[Shilpi Jain]

Where is it mentioned in the law that the officer needs to rely only of FIRC?

You need to deal with this factually. Why in this case FIRA is given and not FIRC. Bring that out.

A task which is impossible to do cannot be asked by the officer to be done under GST. If FIRC's are not being issued for your transcation by the relevant authorities, you cannot be penalised for it or you cannot be denied the benefits under the law.

[Sadanand Bulbule]

Dear querist

I endorse the clarifying opinion of Shilpi madam.

[KASTURI SETHI]

Sh. Deepanshu Garg Ji,

FIRA and FIRC both have equal legal sanctity. Both are official intimations given by the bank to the applicant.  FIRA was accepted by the Govt. of India as per details given below:-

2009 (11) TMI 625 - GOVERNMENT OF INDIA - IN RE : PARESH KANJIBHAI PATEL

Order No. 307/2009-Cus., dated 4-11-2009 in F. No. 371/35/B/2008-RA-CUS

Para No.3.6 “Non-mentioning, by the Bank, in the Foreign Inward Remittance Advice, of the purpose of remittance cannot lead to a conclusion that the remittance was an afterthought or that the banker did not know the reason for receipt of the remittance. It was only an intimation of inward remittance given by bank to the applicant.”

         This can help you.

[Raam Srinivasan Swaminathan Kalpathi]

With due respects to the explanations provided and not disputing the legal standpoint, this issue can be solved without litigation.  A request can be made to the bankers to issue a manual FIRC by providing the FIRA reference to them.  We have been able to secure the same from our bankers in 2 or 3 days.  This custom of only accepting FIRC instead of FIRA had started about 4 years ago and the department has ever since insisting only on FIRCs.  Any banker is duty bound to issue an FIRC if the customer seeks.  Annexure A of the refund master Circular 125/45/2019 only insists "BRC/FIRC /any other document indicating the receipt of sale proceeds of services".  If the credit of the proceeds are realised in the EEFC account then the relevant statement duly authenticated by the bankers should also suffice.  Else, a certificate can be obtained from the bankers containing invoice-wise details confirming realisation of proceeds in convertible foreign currency.  Thanks

[KASTURI SETHI]

Dear Sir,

Thank you very much for posting very useful information. This will help me also.

[Pradeep Reddy Unnathi Partners]

In addition to the arguments on impossibility of obtaining FIRC, the appellant can consider obtaining BRC, as per the GST law mandates obtaining either FIRC or BRC for granting refund.

[Sadanand Bulbule]

Dear all

Please refer Para No.48 of CBIC Circular Np.125/44/2019-GST dated 18/11/2019 clarifying the need of FIRC OR BRC as the case may be.

AI Summary

Tax Refund Denied Over FIRA Instead of FIRC; Appeal Cites 2009 Order Validating Both Documents A refund application was rejected by tax authorities because the assessee submitted a Foreign Inward Remittance Advice (FIRA) instead of a Foreign Inward Remittance Certificate (FIRC). An appeal is underway, and the Commissioner (Appeals) requires a legal basis for accepting FIRA. Contributors suggest that both FIRA and FIRC have legal validity, referencing a 2009 government order. They recommend obtaining a manual FIRC from banks or using a Bank Realization Certificate (BRC) as alternatives. It is argued that the law does not exclusively mandate FIRC, and practical solutions should be considered to resolve the issue without litigation.