Procedure for refund of 4% Additional Duty of Customs in pursuance of Notification No.102/2007-Customs dated 14.9.2007 - Customs - PUBLIC NOTICE NO. 04/2009

OFFICE OF THE COMMISSIONER OF CUSTOMS (IMPORT) JAWAHARLAL NEHRU CUSTOM HOUSE, NHAVA SHEVA. F. NO. S/26-MISC- 61 /2007-08 CRC JNCH. Date: 02/02/2009. PUBLIC NOTICE NO. 04/2009 (Referred / amended vide P.N.No. 53/2010) Sub: Procedure for refund of 4% Additional Duty of Customs in pursuance of Notification No.102/2007-Customs dated 14.9.2007 Reg. Attention of all Exporters, Importers, Customs House Agents and Member of Trade and all concerned is invited to Notfn. No. 102/2007 dated 14/09/2007 for refund of 4% SAD and the Boards Circular No.16/2008-Customs dated 13/10/2008 containing on clarification of the Public Notice No. 43/2008 on the above subject. Subsequent to the issue of the above Circular and Public Notice No. of the following procedure has been prescribed. 2. Copy of invoices in electronic form (including the form of CD) : For the purpose of fulfillment of the condition in para 2 (e) (ii) of the Notification No. 102/2007- Customs dated 14.9.2007, the importers can submit copy of invoices in electronic form (including) as prescribed in Information Technology Act, 2000. The electronic media containing the information about sale invoices should, however, be submitted along with a paper declaration by the applicant indicating the invoice numbers contained in the media and subscribing to their truthfulness. 2.1 The paper declaration in such cases is given in Annexure- I that is to be attached to the refund application by the applicant indicating the invoice numbers contained in the media and subscribing to their truthfulness. 3. Payment of ST/VAT by utilizing the input tax credit : In terms of the requirement under para 2(d) of the said notification, it stated that appropriate ST/VAT is to be paid by the importer on sale of goods. The importer can then claim the refund of 4% CVD paid at the time of import. It is noticed that most of the ST/VAT legislations provide for payment of ST/VAT by utilizing the input tax credit. If the Sales Tax Authorities accept payment of ST/VAT through cash or adjustment of input tax credit, the same shall be treated as effective discharge of ST/VAT payment on imported goods. 3.1 Further, it was provided in Boards Circular No.16/2008 Cus dtd.13.10.2008 that a certificate from Statutory Auditor/Chartered Accountant correlating the payment of ST/VAT on the imported goods with the invoices of sale, along with supporting documents of proof of payment of appropriate ST/VAT is acceptable for the purpose of 4% CVD refund. 3.2 Hence, it is clarified that discharge of ST/VAT liability by the importer, through cash or other authorised form of payments to the concerned ST/VAT authority or input tax credit adjustment, could be accepted for the purpose of fulfillment of the condition in para 2 (d) of the Notification for considering sanction of refund of 4% CVD. 3.3 The certificate from Statutory Auditor/Chartered Accountant correlating the payment of ST/VAT on the imported goods with the invoices of sale, along with supporting documents of proof of payment of appropriate ST/VAT is given in Annexure-II. 4. Submission of Original ST/VAT or copies of ST/VAT payment document / Challans by the importers : Keeping in view the difficulties faced in submitting original ST/ VAT challans, it has been decided that alternatively, the importers may submit copies of ST/VAT challan or copies of ST/VAT payment document in different forms evidencing payment made to the bank or ST/VAT Department towards ST/VAT along with a certificate from the Chartered Accountant, who either certifies the importers financial records under the Companies Act, 1956 or any ST/VAT Act of the State Government or the Income Tax Act, 1961, confirming the payment against the aforesaid documents. This would be considered sufficient to fulfill the requirement in terms of para 2(e) (iii) of the Notification No. 102/2007-Customs dated 14.9.2007. 4.1 However, the importers are required to submit the original ST/VAT payment challans or other similar documents for verification by Customs authorities, in such cases if so called for and these shall be returned to the importer after verification. 4.2 The department would accept the certificate given only by such a Chartered Accountant who either certifies the importers financial records under the Companies Act, 1956 or any ST/VAT Act of the State Government or the Income Tax Act, 1961, in order to fulfill the requirement of the condition that the incidence of duty burden has not been passed on by the importer to any other person for the purpose of refund of 4% CVD. A certificate by any other independent Chartered Accountant would not be acceptable for this purpose. 4.3 The certificate from the Chartered Accountant for ST/VAT Challan or copies of ST/VAT payment document in different forms evidencing payment made to the bank or ST/VAT Department towards ST/VAT is given in Annexure- III. 5. Imported goods by importer through consignment agent/stockist : In case of sale of imported goods by importer through consignment agent/stockist, refund of 4% CVD would be granted by Customs field formations subject to the condition that the consignment agent/stockist has been authorised to sell the imported goods in terms of the agreement entered into between the importer and consignment agent/stockist and that each of the sale invoices issued by the consignment agent/stockist indicates that the sale is made by him on behalf of the importer in the capacity of consignment agent/stockist. These conditions shall be verified by the Customs officers before sanction of 4% CVD refund claims in these cases. 5.1 In such cases, it is also required that the applicant submits a certificate from a Chartered Accountant appointed by the importer, who either certifies the importers financial records under the Companies Act, 1956 or any ST/VAT Act of the State Government or the Income Tax Act, 1961, to the effect that appropriate ST/VAT has been paid by consignment agent/stockist on behalf of importer and that the importer, in turn, has paid or reimbursed the ST/VAT to his consignment agent/stockist along with the correlation of ST/VAT payment with 4% CVD paid on imported goods. 5.2 The certificate from a Chartered Accountant to the effect that appropriate ST/VAT has been paid by consignment agent/stockist on behalf of importer and that the importer, in turn, has paid or reimbursed the ST/VAT to his consignment agent/stockist along with the correlation of ST/VAT payment with 4% CVD paid on imported goods, is given in Annexure-IV. 6. All Trade and the industrial association are requested to bring the contents of this Public Notice to the knowledge of their members. Sd/- (SANJEEV BEHARI) COMMISSIONER OF CUSTOMS (IMPORT) NHAVA SHEVA.