TaxTMI 
TaxTMI 
Refund of 4% Additional duty in pursuance of Notification No.102/2007-Customs dated 14-09-2007 as amended – Documentary and procedural requirements to be fulfilled by the Claimants to ensure expeditious disposal of claims – reg.
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....1-08-2008 mandating various conditions to be fulfilled by the claimants to be eligible for the refund of the said 4% AD. Further, the Central Board of Excise and Customs has issued several circulars, viz., Circular Nos.6/2008 dated 28-04-2008, 16/2008 dated 13-10-2008, 6/2009 dated 09-02- 2009, 15/2010 dated 29-06-2010, 18/2010 dated 08-07-2010, 23/2010 dated 29-07- 2010 and 27/2010 dated 13-08-2010 on the subject to clarify various doubts raised by the field formations. The circulars have elaborated the mandatory procedural requirements to be complied with by the claimants before the sanction of refund of 4% AD. 3. Inspite of streamlining the procedure for grant of refund of 4% AD, it is observed that in many cases, the claimants are still not complying with all procedural requirements prescribed and are also not submitting the requisite documents in time leading to delay in processing of refund claims. In view of the above, this trade facility notice is issued for the benefit of the importers and trading public (claimants), incorporating the important provisions and clarifications issued by the Board (as on date) vide the aforesaid Notifications and Circulars regarding grantin....
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....oluminous and difficult for the importers as well as the Department to handle such invoices in hard copy. • In case of sale through consignment agent/stockist, refund of 4% AD shall be subject to the condition that by an agreement entered into between the importer and Consignment agent/stockist, the said consignment agent/stockist is authorized to sell such goods on behalf of the importer and that each of the sale invoices issued by the consignment agent/stockist indicate that "the sale is made on behalf of the importer in the capacity of consignment agent/stockist". Further, in such cases, the applicant shall submit a certificate from a Chartered Accountant duly appointed by the importer, 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, to the effect that appropriate ST/VAT has been paid by consignment agent/stockist on behalf of importer and that the importer, in turn, has paid or reimbursed the ST/VAT to his consignment agent/stockist along with the correlation of ST/VAT payment with 4% CVD paid on imported goods. 3. Circular No.6/2009-Customs dated 09-02....
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....ated 13-08-2010: • 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 31-01-2011 as a one-time measure and it was also clarified that only those Bills of Entries will be allowed manual processing wherein the duty involved is equal to or less than the balance amount in the re-credited scrip; It was also advised that re-credit amount of CVD refund should be used for payment of BCD and CVD only and not for 4% CVD so as to avoid cascading of subsequent re-credit of 4% CVD in the relevant Scrips. Further, in the interest of ....
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....ds justifying 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 dated 28-04-2008; 6. In cases where there is variation between the description given in the bill of entry and in the sales invoice, claimant shall submit for consideration, necessary supporting documentary evidence such as import invoice, confirmation from the supplier etc., establishing the identity of the goods; 7. It is noticed that (as also observed by Board vide Circular No.15/2010 dated 29-06-2010) in certain cases, refund claims have been filed with the department by some unscrupulous importers wherein forged documents were submitted for availing the 4% AD refund and Chartered Accountants have certified without due verification in respect of the fact of actual sale of the imported goods, correlation of VAT paid with imported goods, crossing of the bar of unjust enrichment (envisaged in the notification No.102/2007-Customs dated 14-09-2007). It is to be noted that cross-verification of documents will be carried out by the department on random basis and if it is found that documents submitted were forged or falsi....
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....Companies Act/ST/VAT Act/Income Tax Act) shall be furnished confirming that the copies of documents submitted (as evidence of VAT/CST payment) were true copies thereof of the originals. Further, all such copies should be duly certified by the said CA for identification. Alternatively, the CA certificate may include an ABSTRACT containing details of documents (verified by CA) evidencing payment of VAT/CST for relevant states/periods. (Format for CA certificate including the Abstract enclosed herewith as Annexure-III); 4. 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: (Format for CA certificate enclosed herewith as Annexure-IV; (i) Correlating the payments of VAT/CST on the imported goods (in respect of which refund is claimed) with the invoices of sale; and (ii) Declaration to the effect 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 and documentary evidence on the basis of which such clai....
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....th submitting copy of invoices in electronic form (CD/DVD/...............). We further declare and state that - 1. The electronic media (CD/DVD/...... enclosed herewith) is containing the details of sales 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:............................................. ....
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.... same to the respective State Government/s on the sale of imported goods against which the refund of 4% AD is being claimed. The copies of VAT/CST returns & documents evidencing 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:...................... Name: ............................................. ....
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....tatutory Auditors/Chartered Accountants who certify the annual financial records of M/s _____________ under the Companies Act, 1956/ST/VAT Act of the State Government/the Income Tax Act, 1961. (Board Resolution/Claimant Company's Appointment Letter/ ..................... to that effect as proof is enclosed herewith); 2. It is certified that the claimant M/s.__________________ has at the point of sale made an endorsement in all the sales invoices against which the imported goods had been sold for which refund has been claimed (as detailed in the correlation sheet) to the effect that "No credit of the Additional duty of Customs leviable under section 3 (5) of the Customs Tariff Act, 1975 shall be admissible". We further certify that the claimant has not availed any Cenvat credit in respect of items imported under the Bills of Entry(to the extent for which refund has been claimed) as detailed in the correlation sheet. 3.The VAT/Sales Tax Authorities for M/s _____________ accept payment of VAT/CST through cash or adjustment of input tax credit as effective discharge of VAT/CST payment on sale of goods; 4.For purpose of fulfillment of the condition at Para 2 (d) of the Noti....
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....s/Recoverables in cash / ........................' under the sub-heading "Loans & Advances / ...............................' under the head, 'Current Assets / ...........................'; (ii) The 4% Additional Duty claimed as refund has not been charged to 'Expenses /.....................' in the Profit and Loss Account of the company and 15 therefore the same is not forming part of the cost of the goods and hence the burden of 4% AD is not being passed on to the buyer or any other person. (iii)..................................................................................... Place:.............................. Signature:......................................... Date:...................... Name: ............................................. &nb....
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.... (ii) SUB-TOTAL SUB-TOTAL SUB-TOTAL SUB-TOTAL TOTAL TOTAL TOTAL TOTAL 2 (i) SUB-TOTAL ....
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....es 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:...................... Name: ............................................. Designation:............................................... For M/s ____________________ &nbs....