Ref. No. 070403 Dated: 11.11.2009.
Submitted to the Chairman, Central Board of Excise and Customs, New Delhi.
Sub: Amendment to to Sec. 28 C of the Customs Act, 1962 proposed.
01. Kind attention is drawn to Sec. 28 C of the Customs Act, 1962 which might require an amendment.
02. As could be seen from the debate in the Lokh Sabha, Section 28 C of the Customs Act, 1962 and Sec. 12 A of the Central Excise Act, 1944 have been inserted at the instance of the Public Accounts Committee. http://parliamentofindia.nic.in/ls/lsdeb/ls10/ses1/1510099101.htm. While sanctioning the refund, sale invoice could not be demanded as stipulated u/s 28 C because no sales takes place at the time of customs clearance. As a result, the very purpose of inserting the section is defeated.
03. The reason is because Section 12 A of the Central Excise, 1944 and Section 28 C of the Customs Act, 1962 are worded almost similarly, though the situations of clearance are different. At the time of sale, the goods are cleared from the factory under excise invoice. On the contrary, sale, if any, takes place only after all the customs clearance formalities are over. As such, after the words “shall at the time of the clearance of the goods” a few more words to incorporate sales transaction happening after the customs clearance of the goods are to be inserted. This may please be considered. 04. Kindly acknowledge receipt of this letter, mentioning therein your file No. to enable us to pursue the matter