CBEC vide circular no. 6/2008 dated 28-4-2008 issued clarification regarding refund of 4% Additional Duty of Customs under notification no. 102/2007 dated 14-9-2007.

Referred Circular -  F.No.354/129/2007-TRU dated 14.9.2007 regarding Refund scheme for the 4% additional CV duty levied under Section 3(5) of the Customs Tariff Act, 1975.

Highlights of the circular no. 6/2008 are as follows:

1. All refund applications under the aforesaid notification shall be received by the concerned field formations in their Centralized Refund Section, and the applicants would be given proper acknowledgement. The status of these refund claims shall also be displayed in the online database of customs duty refunds maintained by the respective Commissionerates.

2. Taking into account various factors, it has been decided to permit importers to file claims under the above exemption upto a period of one year from the date of payment of duty. 

3.  Only a single claim against a particular Bill of Entry should be permitted to be filed within the maximum time period of one year. Filing of refund claim for a part quantity in a bill of entry shall not be allowed except when this is necessary at the end of the one year period.

4.  Since the Sales Tax (ST) / Value Added Tax (VAT) is being paid on periodical or monthly basis, even in case of bills of entry where the entire quantity of goods are sold within a month, all such cases shall be consolidated in a single refund claim and filed with the Customs authorities on a monthly basis.

5.  There shall not be any interest on delayed grant of refund.

6.  It is not the intention of the Government to allow the importer to recover the 4% CVD from the buyer as well as to claim refund of this amount from Customs.  Hence, the principle of unjust enrichment needs to be examined in each case before sanction of refund under this notification.

7.  Importers may produce a certificate from the statutory auditor/Chartered Accountant who certifies the importer's annual financial accounts under the Companies Act or any statute, explaining how the burden of 4% CVD has not been passed on by the importer and to fulfill the requirement of unjust enrichment. 

8. Only those cases where 4% CVD was paid on or subsequent to 14.9.2007, will qualify for refunds under this scheme subject to fulfillment of prescribed conditions. 

9. In case of 4% CVD having been paid through DEPB Scrip, whether refund could be paid by cash, it is clarified that instead of refunding the duty in cash, the amount eligible for refund should be re-credited on the relevant DEPB Scrip. 

Additional customs duty refund allowed within a limited filing period, subject to single-claim rule and unjust enrichment checks. Refunds of the 4% Additional Duty of Customs must be filed with the Centralized Refund Section and will be acknowledged and listed online. Claims are allowable up to one year from payment, with only a single claim per Bill of Entry; part-quantity claims are restricted. No interest is payable on delayed refunds. Refunds require examination for unjust enrichment, supported by a statutory auditor/chartered accountant certificate where necessary. Only duties paid on or after the notification date qualify, and amounts paid via DEPB scrip should be recredited to the relevant DEPB scrip rather than refunded in cash.