Delay in payment of customs duty refunds–Regarding - Customs - 39/2007

OFFICE OF THE COMMISSIONER OF CUSTOMS NEAR AKASHWANI: NAVRANGPURA: AHMEDABAD 380009 F. No. VIII/48-162/Cus(T)/07 Dated: 31st July, 2007 PUBLIC NOTICE NO. 39/2007 Sub : Delay in payment of customs duty refunds Regarding. Representation from importers, exporters, trade and industry associations have been received in the Board regarding delay in payment of Customs duty refunds and the hardships faced in obtaining refunds from Customs field formations. Further, in a number of cases it has also come to the notice that the Courts and higher judicial authorities have taken adverse note of the delay caused in refund of duty. In order to ensure expeditious disposal of Customs duty refund applications and to enhance transparency in refund disbursement as well as to bring alertness among the officers, the following procedure has been prescribed by Board:- (1) System for receipt and acknowledgement of all Customs duty refund applications: All refund applications made by any person under section 27 of the Customs Act, whether by post or courier or personal delivery, shall be received by the department and a simple receipt, for having received the application that is said to have been filed as refund application shall be issued immediately. At this stage the receipt should make it clear that the application has not been scrutinized for its completeness. These applications are required to be scrutinized for their completeness within ten working days of their receipt, for giving acknowledgement by the proper officer as per the Customs Refund Application (Form) Regulations, 1995. Hence, if any deficiency is found in the application or any document is required by the department, the same shall be informed at this stage of initial scrutiny itself within ten working days of the initial receipt. This will avoid any chance for raising repeated queries to the applicant, in a piece-meal manner and bring certainty in dealing with refund applications. (2) Processing of refund applications and their disposal: Application of refund found to be complete in all respects by Customs, after scrutiny as above, shall be processed on first-come-first served basis so as to decide whether the whole or any part of the duty and interest paid by the applicant is refundable. If refund is due in such case, an order for refund is required to be passed in terms of sub-section (2) to section 27 or where the claim for refund is found liable to be rejected, as the case may be, a speaking order shall be passed giving complete reasons for the order. Further, in respect of the provisions of unjust enrichment, the order should indicate that this aspect has been examined based on the guidelines, if any, applicable; the order should also contain the findings of adjudicating authority on the documents produced in support of the claim and the basis for determining the amount as either refundable to the claimant or payable to the Consumer Welfare Fund or the claim not being admissible. (3) Issue of Cheque: Where the refund application has been admitted, whether in part or in full, and claimant is eligible for refund, the Deputy/Assistant Commissioner of Customs may ensure that payment is made to the party within 3 days of the order passed after due audit, if any. In all such cases refund of amount shall be paid to the applicant by a cheque on the authorized bank with which the sanctioning authority maintains account. After the cheque has been signed, it shall either be delivered to the claimant or his authorized representative personally when he next calls for it or sent to him by Registered Post Acknowledgement Due at Government cost, on the basis of pre-receipt already obtained from the claimant. 2. All the Trade Associations/Chambers of Commerce and Members of Regional Advisory Committee and Custom House Agents Association are requested to publicise the contents of this Public Notice amongst their Members/Constituents. Difficulties, if any, in implementation of the above instruction may be brought to the notice of this office. (RAKESH KUMAR SHARMA) COMMISSIONER