Refund of CVD paid

[Baldev Aggarwal]

At the time of Import clearance of a consignment, CVD was paid whereas there was an exemption notification for 'NIL' Excise Duty. Now whether the CVD paid can be claimed as refund mentioning the said exemption notification ?

AI Summary

Claiming CVD Refund Possible Under Section 27 of Customs Act; Watch for Unjust Enrichment and CENVAT Credit Issues. A query was raised regarding the possibility of claiming a refund for Countervailing Duty (CVD) paid during import clearance, despite an exemption notification for 'NIL' Excise Duty. Three responses were provided. The consensus was that a refund application can be filed under Section 27 of the Customs Act, 1962, within one year. However, the principle of unjust enrichment may apply, requiring proof to avoid the refund being credited to a consumer account. Alternatively, CVD can be claimed as CENVAT credit if the terminal product is excisable, though this may lead to legal debates on eligibility.