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.
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 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 granting of refund of 4% AD. The gist of the aforesaid notifications a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....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 09-02-2009: * In case of 4% CVD having been paid through VKGUY, FPS, FMS Scrips, the amount eligible for refund should be re-credited on the relevant VKGUY, FPS a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....or 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 ensuring expeditious grant of refund of 4% CVD in cash, the importers are advised to make the initial payment of 4% CVD in cash. The claimants/importers are also advised to take note of the following while processing of applications for refund of 4....
X X X X Extracts X X X X
X X X X Extracts X X X X
....imant 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 falsified, stern action will be initiated against the offenders under the relevant provisions of the Customs Act, 1962 and other laws. Further, in such cases, the matter would also be referred to the Institute of Chartered Accountants of India for necessary action. 4. This Trade Facility is not to be re....
X X X X Extracts X X X X
X X X X Extracts X X X X
....cuments (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 claim is corroborated and substantiated. (Format of self-declaration of importer enclosed herewith as Annexure-V); 5. Work 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 ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....edia. 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:……………………………….. For M/s ____________________ Summary of the invoices contained in the media Sl. No. Sales Invoice No. Date Amount of sale in Rs. VAT/CST paid thereon Remarks Annexure- III CERTIFICATE FROM THE CHARTERED ACCOUNTANT FOR NOT SUBMITTING ORIGINAL ST/ VAT CHALLANS AND FOR SUBMITTING COPIES OF ST/VAT CHALLANS OR COPIES OF ST/VAT PAYMENT DOCUMENTS IN DIFFERENT FORMS EVIDENCING PAYMENT OF ST/VAT With regard to the imports made vide Bill/s of Entry No.__________....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hellip;. Name: ……………………………………… For M/s ____________________ (CA) Membership No…………… Enclosure: Certified copies (by CA) of returns & documents evidencing payment of VAT/CST (Strike out if not applicable) Annexure-IV CERTIFICATE* FROM STATUTORY AUDITOR/CHARTERED ACCOUNTANT CERTIFYING THE IMPORTER'S FINANCIAL RECORDS UNDER THE COMPANIES ACT, 1956/ST/VAT ACT / INCOME TAX ACT, 1961 (i) Co-relating the payment of VAT/CST on the sale of imported goods (in respect of which refund is being claimed) with the invoices of sale; (ii) Certifying that the burden of 4% AD has not been passed on by the importer to the buyer or any other person and that the requirement to rule out unjust enrichment is fulfilled; and (iii) Explaining how the burden of 4% AD has not been passed on by the importer and how the requirement to rule out unjust enrichment is fulfilled. With regard to the imports made by M/s ____________________ under various Bills of Entry No(s) and Dates (as detailed in the correlation sheet enclosed herewith) against which the 4% Addit....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on 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); 5. 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/ ………… etc., of the goods. Based on such verification, we have satisfied ourselves that the price at which the imported goods have been sold to buyers (including those cases where the goods were subjected to RSP/MRP based assessment at the time of import) 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 certify that the claimant has not passed on the incidence of the 4% Additional Duty to the buyer or any other person and hence the requirement to rule out unjust enrichment to the importer/claimant is fulfilled in respect of all goods imported and sold as covered by the subject claim (as d....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ports, Sales and VAT/CST paid thereon Importer's Name : …………………. Date of filing claim with Customs : ……………………………. DETAILS OF IMPORTS DETAILS OF SALES & VAT/CST PAYMENT THEREON Sl. No. BE No. & Date TR6 Challan No. & Date Descrption of imported goods Qty Imported 4% AD paid (Rs.) Sales Invoice No. & Date Name of buyer Qty. sold State from which goods were sold Applicable Rate of VAT/ CST VAT/ CST paid (Rs.) VAT/ CST Ref. No. Ref. No. Refund Claimed (Rs.) 1 (i) Sub-Total for each individual item of BE and total for each BE and Grant Total for total no. of Bills of Entry SUB-TOTAL SUB-TOTAL SUB-TOTAL (ii) SUB-TOTAL SUB-TOTAL SUB-TOTAL SUB-TOTAL TOTAL TOTAL TOTAL TOTAL 2 (i) SUB-TOTAL (ii) SUB-TOTAL TOTAL TOTAL TOTAL TOTAL GRAND TOTAL GRAND TOTAL GRAND TOTAL GRAND TOTAL Annexure - V SELF-DECLARATION FOR NOT PASSING ON THE INCIDENCE OF 4% AD TO ANY OTHER PERSON Refund on the Bill/s of Entry No. ____________ dated ___________ / List enclosed We, M/s __________________....