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 ?

[Guest]

Yes you can file refund application.Section 27 of the Customs Act, 1962 refers in this regard. Principle of unjust enrichment will also applicable in these matters. You will have to file refund application within one year. Proviso 2 (a) of Section 27 of the Customs Act,1962 will also applicable.

[Ravi Chopra]

Yes, you can get the refund of CVD paid at the time of import which was exempted otherewise by way of an exemption notification under central excise. But, you refund application must be within the period of one year.

[Prabhakar Vennalaganti]

Ofcourse, reund provisions are there for claiming the erroneouse payment. But there are chances of the same is hit by unjustenrichment clause where the the sanctioned amount will be credited to the consumers account if sufficient documentary evidence is not provided towards proving the "unjustenrchment". One more method is to claim CVD paid as cenvat credit, provided the terminal product is excisable. Hear also a legal debate may arise on the elibility part of whether the duty paid on exemptied products can be treated as duty for the purpose of allowing the Cenvat. Ofcourse, in such case it can be contested before the adjucating forums. Based on the quantum of amount involved and a decission is to be taken which one is the approprate way to the duty paid.

AI Summary

Refund of countervailing duty allowable where exemption applied, subject to unjust enrichment and a one-year limitation. Refund of countervailing duty (CVD) paid on import can be claimed where an exemption notification made the goods exempt; the remedy is a refund application subject to a one-year limitation and the principle of unjust enrichment, with proviso 2(a) applicable. Alternatively, CVD may be claimed as cenvat credit if the terminal product is excisable, though eligibility for credit on duty paid for exempted goods is contestable and may require adjudication; choice of remedy depends on quantum and available documentary evidence to rebut unjust enrichment.