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TaxTMI 
TaxTMI 
Processing of Refund Claims of 4% Additional Duty of Customs (4% AD) in pursuance of Notification No.102/2007-Customs dated 14.9.2007 as amended and various circulars issued by the Board from time to time – Documentary and procedural requirements to be fulfilled by the claimants to ensure expeditious disposal of claims – reg.
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....er section 3(5) of the Customs Tariff Act, 1975 (hereinafter referred as 4% AD). Government of India has issued Notifications No's 102/2007 dt. 14.9.2007 & 93/2008 dt. 01.08.2008 mandating various conditions to be fulfilled by the claimants to be eligible for the refund of said 4% AD. Further, the Central Board of Excise and Customs (CBEC) has issued many circulars (No's 6/2008 dt. 28-4-2008, 16/2008 dt. 13-10-2008, 6/2009 dt. 9-2-2009, 15/2010 dt. 29-6-2010, 18/2010 dt. 8-7-2010, 23/2010 dt. 29-7-2010 & 27/2010 dt. 13-8-2010) on the subject and has since clarified various doubts raised by the field formations. The circulars also elaborated on the mandatory procedural requirements to be complied with by the claimants before the sanction of refund of 4% additional duty of customs. Accordingly, Public Notices have also been issued by Air Cargo Complex, Chennai informing the Trade about the contents of said circulars issued by the Board. Even after such streamlining of the procedure regarding granting of refund of 4% AD, it is observed in many cases that the claimants are not complying with all procedural requirements prescribed and also not submitting requisite documents in time le....
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.... Certificate from Statutory Auditor / Chartered Accountant who certifies the Annual Accounts of the Company under the Companies Act / ST/VAT Act of the State Government / Income Tax Act covering the following aspects: (Suggested format for CA certificate enclosed herewith as Annexure-II) Correlating the payments of VAT/CST on the imported goods (in respect of which refund is claimed) with the invoices of sale. Stating that the burden of 4% AD has not been passed on by the importer to the buyer and that the requirement to rule out unjust enrichment is fulfilled. Explanation as to how unjust enrichment (in the subject claim) is ruled out and the specific grounds/reasons for coming to such conclusion that the burden of 4% AD has not been passed on to any other person. Working Sheet duly certified by Statutory Auditor / Chartered Accountant (who certifies the Annual Accounts of the Company under the Companies Act / ST/VAT Act / Income Tax Act) showing detailed correlation between imports, sales and payment of VAT/CST thereof (in the format given as enclosure to Annexure-II) Extracts of Sales ledger (indicating inter alia, the details of invoices and VAT/CST payments made thereon ....
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....rescribed conditions. (Refer Board Circular No. 6/2008 dt. 28-4-2008) In order to fulfill the requirement of the condition that the incidence of duty burden has not been passed on by the importer to any other person for the purpose of refund of 4% AD, a certificate issued only by such a Chartered Accountant who either certifies the importer's financial records under the Companies Act, 1956 or any ST/VAT Act of the State Government or the Income Tax Act, 1961 will be acceptable. As clarified by the Board, certificate by any other independent Chartered Accountant will not be acceptable. (Refer Board Circular No. 16/2008 dt. 13-10-2008) In case of sale of imported goods by importer through consignment agent/stockist, refund of 4% AD will be granted subject to the condition that the Consignment agent/ stockist has been authorised to sell the imported goods in terms of the agreement entered into between the importer and consignment agent/stockist and that each of the sale invoices issued by the consignment agent/stockist indicates that the sale is made by him on behalf of the importer in the capacity of consignment agent/stockist. Further, in such cases, it is a....
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....cus Product Scheme (FPS) and Focus Market Scheme (FMS), the amount eligible for refund will be re-credited on the relevant DEPB / VKGUY / FPS / FMS Scrip. (Refer Circulars No. 6/2008 dt. 28-4-2008 & 6/2009 dt. 9-2-2009). DGFT has since issued Public Notice No. 38/2009-14 and Policy Circular No. 22/2009-2014, both dated 3-2-2010 in this regard. In view of difficulties associated with change in EDI System to allow re-credit of DEPB / VKGUY / FPS / FMS Scrips in case of 4% AD refund and also the view of DGFT that modification in software at the end of DGFT (for the purpose of re-credit of 4% CVD through Electronic Message System and its transmission to the Customs) is not feasible at present, the Board has provided that the registration of re-credited duty scrips issued by DGFT on the basis of consolidated certificate furnished by Customs should be allowed on manual basis. The facility of manual filing of Bill of Entry for utilizing the amount of re-credited CVD refund for payment of duty is also allowed. This facility has been extended up to 30.12.2010 as a one-time measure and it was also clarified that only those B's/E will be allowed manual processing wherein the duty i....
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.... (which is commonly used by many to refer to 4% Additional Duty levied under section 3(5) of Customs Tariff Act 1975) may be avoided in all references as the abbreviation "SAD" may refer to anything including the "Special Additional Duty" which leviable under Section 3A of Customs Tariff Act 1975. The Chartered Accountant's certification should be categorical with regard to verification of claimant's records, Books of Accounts etc. for ruling out unjust enrichment and also co-relating in detail, sales with VAT/CST payment. The certificate shall contain an explanation / Valid grounds justifying as to how the incidence of 4% Additional Duty has not been passed on to the buyer, as required under para 6.2 of the CBEC Circular No. 6/2008 dt. 28.4.2008. In cases where there is variation in the description mentioned in the bill of entry and that reflected in the sales invoice, claimants shall submit for consideration, necessary supporting documentary evidence such as import invoice, confirmation from the supplier etc. establishing the identity of the goods. It is noticed that (as also observed by Board vide Circular No. 15/2010 dt. 29-6-2010) in certain cases, refund claims have....
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....c media (CD/DVD/...... enclosed herewith) is containing the details of sale invoices pertaining to the subject claim and is being submitted along with this paper declaration indicating the invoice numbers (listed below) contained in the media. 2. The copies of invoices contained in the media are true copies of the original sale invoices/carbon copy/office copy (original) of the said invoices and the originals will be submitted, if so required. Place:.............................. Signature:......................................... Date:...................... Name:.............................................. Designation:............................................... &....
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....ose of fulfillment of the condition at Para 2 (d) of the Notification No. 102/2007 dated 14-09-2007 and for considering sanction of refund of 4% AD, as Statutory Auditor / Chartered Accountant of M/s _______________, we hereby certify that we have verified the Bills of Entry & corresponding TR6 challans/e-receipts, invoices of sale and supporting documents as proof of payment of appropriate VAT/CST on sale of goods vide said invoices [viz., VAT/CST challans / returns & details of cheques / DD's / .................], sales registers etc. Based on said verification, we certify that the goods imported under the Bills of entry (as detailed in the correlation sheet enclosed herewith) have been sold under various sales invoices (as detailed in the correlation sheet enclosed herewith) and on each such sale, appropriate VAT/CST had been paid to the concerned VAT/Sales Tax authorities (as detailed in the correlation sheet enclosed herewith). 4. For the purpose of examining the clause of unjust enrichment to the importer in respect of subject refund claim, we have verified the importer's Books of Accounts and other relevant documents & records / cost sheets / price structure / .....
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.... Name:.............................................. For M/s ____________________ (CA) &....
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.... the payment of VAT/CST (as effective discharge of VAT/CST payment on imported goods), duly certified by us as true copies of their originals are enclosed herewith. / Details of returns & documents verified by us evidencing payment of VAT/CST for relevant states/periods are given in the following abstract. (Strike out wherever not applicable) ABSTRACT State where VAT/CST paid Return for the Month / Period CST / VAT VAT/CST Payment Mode (Challan/Cheque/DD/ e-payment/ Bank Statements/ Input Credit Adjustments) VAT/CST Payment Reference No. & Date Total VAT/CST paid in Rs. Amount of VAT/CST paid on sale of goods pertaining to subject claim Place:.............................. Signature: .......................................... Date:..................... &n....
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....fy that (i) M/s _______________ has been authorised as Consignment agent/Stockist to sell the imported goods in terms of the agreement entered into between the importer M/s _____________ and consignment agent/stockist M/s ________________; (Agreement copy attested by us enclosed herewith) (ii) that each of the sale invoices issued by the consignment agent/stockist indicates that the sale is made by him on behalf of the importer in the capacity of importer's consignment agent/stockist. (iii) appropriate VAT/CST has been paid by Consignment Agent/Stockist, M/s ___________ on behalf of importer M/s _____________ and that the importer, M/s ___________ in turn, has paid/reimbursed the VAT/CST amount to his Consignment Agent/Stockist M/s _______________ (iv) VAT/CST payment made to concerned authorities is correlated with 4% AD paid on imported goods (as per enclosed correlation sheet) Place:.............................. Signature:.............................................
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....have paid, at the time of import, applicable duties of customs including the 4% Additional Duty of Customs levied under section 3(5) of the Customs Tariff Act, 1975. The imported goods were subsequently sold by us to buyers vide various invoices and applicable VAT/CST was paid on such sales (to the VAT/CST authorities of the State Government/s.) 2. We declare that the price at which the imported goods have been sold to buyers vide various invoices does not include the component of the said 4% Additional Duty of Customs levied under Section 3(5) of the Customs Tariff Act, 1975 which was paid at the time of import. As such, we state and certify that we have not passed on the incidence of 4% Additional Duty of Customs levied under section 3(5) of the Customs Tariff Act, 1975 to the buyer or any other person. Place:.............................. Signature:......................................... Date:...................... &nbs....