Refund Application_Processing: Critical elements

[Authority provided as attachments at the bottom of this page]
  • Dealing Assistant [DA] to give a receipt  for Refund Applications handed over in person during office hours, incorporating the I.C. No. & Date [Inward Correspondence Register Serial Number and Date]; the number of sheets/pages of enclosures; a note that the application has not been scrutinized for its completeness appending full signature, name and designation.  These details may be written either on the forwarding letter of the refund application or on the Importers copy of the application or on a separate sheet of paper. [ As per Office Procedure, only the receipted communications are 'date stamped' and retained in office. Govt has lost enormous money on court verdicts due to  'date stamped acknowledgement of refund application' without any IC No.&Date to overcome limitation/others. ]
  • On the same day DA should obtain the initial of the AC/DC on the Refund Applications because it is the AC/DC to whom the Refund Applications are to be made and the limitation period is prescribed.

  • Where any deficiency is noticed, the entire Refund Application along with enclosures must be returned for making good the deficiency. No part of the Refund Application can be retained at office even if the applicant so desires. The date of re-submission is the limitation period for delayed payment interest.
  • AC/DC must issue acknowledgement in the prescribed form within 10 working days. Before such acknowledgement is issued, the  Refund Application should not be processed for sanction.

  • All Refund Applications exceeding Rs.50000 must necessarily be pre-audited before sanction.  Sanction Order-in-originals in respect of pre-audited refund claims of exceeding Rs. 50000 should not be sent for review by Commissioner, because the Commissioner already approves the pre-audit. 
  • Where any Chartered Account Certificate is submitted as evidence, the certificate must inter-alia contain a specific declaration that the part of customs duty has been prominently indicated in all sale invoices and other like documents. 
  • SECTION 28C of the Customs Act, 1962 [Price of goods to indicate the amount of duty paid thereon] mandates that the amount of duty which will form part of the price to be prominently indicated in all the documents relating to assessment, sales invoice and other like documents.  Sales Invoice is the critical document by which the incidence of any indirect tax is passed on to the consumer. So, if there is no prominent indication of the Customs Duty in the sales invoice, refund is not payable.  Section 28 C being statutory law, executive relaxation will not at all override it.  

    SECTION 28D of the Customs Act, 1962 says that every person who has paid the duty on any goods under the Customs Act, 1962  shall, unless the contrary is proved by him, be deemed to have passed on the full incidence of such duty to the buyer of such goods.