Refund claim for VAT - Procedure

[Nitin Bhisikar]

We are importing the material (In Shell Almond) on payment of appropriate duties including the additional duty @4% , we are not a registered dealer and do not pass on the duty amount. We also have exemption from Sales Tax under Entitlement Certificate from DIC. We are selling these In Shell Almond after removing Shells. Can we file refund claim under Notification No. 102/2007 - Custom as this notification read with relevant circular says about payment of ' Appropriate Sales Tax or value added tax' and as per my opinion 'Appropriate Sales Tax or VAT' may include Zero or Nil rate of Sales Tax or VAT. If refund Claim can be filed then which documents need to enclosed. Your reply is awaited Cell No. 09370356211, 09028419208 email : [email protected]

AI Summary

Nil VAT Rate Not Eligible for Refund on Imported Almonds Under Notification No. 102/2007 - Custom, Section 3(5) A query was raised regarding the eligibility for a VAT refund on imported materials, specifically In Shell Almonds, under Notification No. 102/2007 - Custom. The inquirer, not being a registered dealer and exempt from Sales Tax under an Entitlement Certificate, questioned whether a zero or nil rate of VAT could be considered 'appropriate' for refund purposes. The response clarified that a nil rate of duty is not considered appropriate, thus making it ineligible for a refund of the 4% additional duty paid under section 3(5) of the Customs Tariff Act, 1975.