Procedure to process Refund claims of units located/registered in SEZs within the jurisdiction of Air Cargo Complex, Sahar, Mumbai consequent to Notification No. 772(E) dated 05.08.2016 (F.NO. D.6/40/2012-SEZ) - Customs - PUBLIC NOTICE- 39/2017

OFFICE OF THE COMMISSIONER OF CUSTOMS (EXPORT) AIR CARGO COMPLEX, SAHAR, ANDHERI (EAST), MUMBAI-400099. F. No. S/3-SEEPZ REFUND-01/2017-18/Tech (G) Acc Date: 10.11.2017 PUBLIC NOTICE- 39/2017 Subject: Procedure to process Refund claims of units located/registered in SEZs within the jurisdiction of Air Cargo Complex, Sahar, Mumbai consequent to Notification No. 772(E) dated 05.08.2016 (F.NO. D.6/40/2012-SEZ)- regarding. Attention of all unit holders located in SEZs within the jurisdiction of Air Cargo Complex, Sahar, Mumbai, Customs Brokers, Importers, Exporters, Members of the Trade and all stakeholders is invited to the Notification No. 772(E) dated 05.08.2016 and CBEC Circular No. 11/2017-cus dated 31.03.2017, vide F. No. DGEP/SEZ/51/2009 Part II. 2. The Central Government vide Gazette Notification No. 772(E) dated 05.08.2016 (F.NO. D.6/40/2012-SEZ) has amended Special Economic Zones Rules, 2006. In the said Special Economic Zones Rules, 2006 in rule 47, after sub rule (4) has been inserted, namely- (5) Refund, Demand, Adjudication, Review, and appeal with regard to matters relating to Authorized operations under Special Economic Zones Act, 2005, transaction, and goods and services related thereto, shall be made by the Jurisdictional Customs and Central Excise Authorities in accordance with the relevant provisions contained in the Customs Act, 1962, the Central Excise Act, 1944, and the Finance Act, 1994 and the rules made there under or the notifications issued there under. (i) CBEC Circular No. 11/2017-cus dated 31.03.2017 issued vide F. No. DGEP/SEZ/51/2009 Part Il, has interalia clarified that with regard to whether these functional operations of refund, demand, adjudication etc. are to be handled prospectively or retrospectively, it is a settled law that unless, otherwise expressed specifically for retrospective application in the notification itself, all notifications are applicable prospectively only. Therefore, all new cases of refund, demand, adjudication, review and appeal are to be made by the concerned jurisdictional authorities of Customs, Central Excise and Service Tax under the provisions of the respective Acts. 3(ii) Functional Operation Standard Operating Procedure (SOP) Refund i. The SEZ unit/ Developer shall file the refund application addressed to the Deputy Commissioner/ Assistant Commissioner of policy or technical, as it may be called, in the Office of Jurisdictional Commissioner of Customs, Central Excise, Service Tax or GST as the case may be. ii. If required, DC/AC (Policy/ Technical or as they may be called in the GST regime) would seek comments from the office of the concerned Development Commissioner on admissibility, limitation including aspects of unjust enrichment of this refund claim under Customs law. iii. The office of the Development Commissioner must provide comments within a maximum period of 2 weeks from the date on which such communication is received from the office of the DC/ AC (Policy/ Technical). iv. DC/ AC (Policy/ Technical) will issue a Speaking Order while sanctioning such refund claims. 3(iii) The question now arises as to how the old cases of refund pending as on the date of the coming into effect of this notification will be sanctioned/ entertained by the Customs, Central Excise or Service Tax or Central GST authorities. The gap in the law was that there was no provision of giving refund in SEZ law. That provision has now been extended by way of amending SEZ Rules by inserting new Rule 47 (5) empowering officers of Customs to issue refund claims. Therefore, refund cases of past, which are otherwise in order, both on account of limitation and merit (even though filed in the office of the Development Commissioner) should be issued by Customs 3(iv) The issue of interest on delayed payment of refund may arise in some cases. However, in such cases, the date on which Such refund claims are received by jurisdictional Customs, Central Excise or Service Tax or Central GST field formations would be relevant for our officers for the purpose of interest rather than the period for which it was lying with SEZ authorities, for which DOC will take necessary action as deem fit by them, if need arises. 4. Hence the procedure of Refund of cases pertaining to the units located in SEZs within the jurisdiction of Air Cargo Complex, Sahar, Mumbai will be dealt in the following manner: 5. Procedure for claiming Refund: The claim of refund of duty pertaining to units located/registered in SEZs within the jurisdiction of ACC, Sahar, Mumbai will be dealt by SAD Refund Section of Commissionerate (General), ACC, Sahar, Mumbai. All refund applications pertaining to SEZ units in the jurisdiction of ACC, Sahar, Mumbai will be acknowledged in the SAD Refund Section and decided/disposed of as per the above guidelines and in the similar manner as being done in respect of other refund claims (pertaining to the units other than SEZ units). 6. All the Trade Associations/Chambers of Commerce/Members of Regional Advisory Committees, Custom House Agents' Association and all other stakeholders are required to publicize the contents of this Public Notice among their members/constituents. (Nikhil Chandra) Commissioner of Customs (General), Air Cargo Complex, Sahar, Mumbai