Refund/rebate claims — Speaking order required on time-bar and unjust enrichment — Instructions therefor - Service Tax - Instruction No. 2/CUS/ TECH/BOL/09

Refund/rebate claims — Speaking order required on time-bar and unjust enrichment — Instructions therefor Commissioner of Central Excise, Bolpur, Instruction No. 2/CUS/ TECH/BOL/09 Dated 15-10-2009 It is observed that the Orders-in-Original in respect of refund or rebate claims, issued by the Deputy/Assistant Commissioners of Central Excise Divisions and Deputy/Assistant Commissioner of Customs, ICD, EPIP, are mostly silent about the impact of unjust enrichment as well as time-bar factors as laid down in Section 11B of Central Excise Act, 1944 (applicable for Service Tax also) and Section 27 of Customs Act, 1962 . 2. It should be kept in mind that an Order-in-Original issued for disposal of a refund/rebate claim should clearly spell out the aforesaid issues. Even in a case where the clause of unjust enrichment or limitation of time is not attracted, the Order-in-Original should clearly indicate according to which provision as elaborated under third proviso to Section 11B of the C. Ex. Act, 1944 (in case of Central Excise) or fifth proviso to Section 27 of the Customs Act, 1962 (in case of Customs) the said refund/rebate is granted to the assessee. 3. It is also directed that the Order-in-Original, in which refund/rebate is sanctioned on the basis of the Chartered Accountant's Certificate, should also record as to whether such certificate is in conformity with the Balance Sheet or the Profit and Loss Account of the company for the relevant year and whether the claimed amount has already been received by the assessee or is a receivable one.