REFUNDS
OBJECT:
Section 26 of
the Customs Act, 1962 is a statutory
provision to claim refund of export duty paid by the exporter.
ESSENTIAL INGREDIENTS:
- The goods must have been returned to the exporter other than by way of
re-sale.
- The goods must have been re-imported within one year from the date of
exportation.
TIME LIMIT:
An application for refund claim must be made within six
months from the date of order of clearance of goods.
REFUND
CLAIMS UNDER SECTION 27
OBJECT:
Section
27 is a statutory authority for allowing
refund of both Customs duty and interest.
Any person who has either paid duty or interest, or borne the
burden thereof may make a claim for refund under this provision. Assistant
/Deputy Commissioner of Customs is the proper officer under the Customs Act to
grant refunds.
TIME
LIMIT FOR FILING CLAIMS:
Law prescribed limitation for claims of refund are as
follows:
- If imports have been made by individual for his personal use, or are made
by the government, or educational, research, or charitable institution, or
hospital, claim must be filed before expiry of one year from the date of
payment of duty.
- In all the other cases, not covered above, the claim must be filed within
six months from the date of payment of duty.
- If the duty has been paid under provisional assessment, the period of one
year or six months will be reckoned from the date of final assessment.
- If the duty has been paid "under protest", above limitation will not
apply.
- If the refund arises as a result of special or ad hoc exemption granted
under Section
25(2), the period of six months or one year
will be computed from the date of such exemption order under Section 25(2).
MANNER
OF CLAIMING REFUND:
- An application for refund of duty/interest will be made in terms of
Customs Refund Application
(Forms) Regulation Act, 1995.
- The claim should be made before the Asst/Deputy Commissioner of Customs
within whose jurisdiction the duty or interest was paid.
- Acknowledgment for claim should be obtained from the proper officer
after examining the application for completeness, within ten working days
from the date of application. The date on which the proper officer gives
acknowledgement will be the basis on which interest payable under
section 27 will be calculated.
- The applicant should enclose the following documents wherever
applicable:
- Triplicate copy of bill of entry/post parcel wrapper/shipping
bill/baggage Receipt or Purchase Invoice
- Duty Challan /other document as evidence of duty payment.
- Signed working sheet for the amount of refund claimed
- Customs attested invoice
- Customs attested packing list
- Documents for establishing the applicant’s eligibility to receive the
refund amount in terms of the proviso to
sub-section (2) of Section 27 of the Act, including documents for the purposes of
Section 28 C and 28 D of
the Act.
- Contract and Purchase order
- Modvat Credit certificate from Central excise authorities
- Order in original/in revision/in Appeal/any other order
- Short delivery certificates from custodian
- Short shipment certificate from the supplier
- Survey Report
- Insurance claim settlement certificate
- Catalogue/ Technical write-up /literature
- Certificate of original
- Letter of authorization from the importer/buyer in case the applicant
is an agent.
- Any other document considered necessary in support of the claim (to be
specified)
Payment
of refund claims
Refund claims are normally paid to the claimants under the
following circumstances.
- If the claimant has not passed on the incidence of duty or interest to any
other person.
- If the importer is an individual who uses the goods personally.
- If the claimant is a buyer of imported goods, he must not have passed on
the incidence of duty and interest to another person.
- Export duty refundable under Section 26.
- Persons notified by the Central Government for the purpose of this
provision. However, all such notifications issued by the Central Government
have to be tabled before the Parliament.
Payment
of interest on delayed refunds
Section
27A provides that if refund is not granted
within three moths from the date of receipt of application claiming refund, then
an interest at the rates between 10% to 30% as prescribed by the Board shall be
paid. The Board has issued Notification No.32/95-Cus.(N.T.),
dated 26.05.1995 and fixed this interest at 15% per annum.
Legislative references:
Section 26 of the Customs Act,1962
Section 27 of the Customs Act,1962
Section 27 A of the Customs Act,1962
Customs Refund Application (Forms) Act, 1995
Section 26 of the Customs Act,1962
Section 27 of the Customs Act,1962
Section 27 A of the Customs Act,1962
Customs Refund Application (Forms) Act,
1995
