Refund of CVD paid, Central Excise

[Baldev Aggarwal]

At the time of Import clearance of a consignment, CVD was paid whereas there was an exemption notification for "NIL" Excise Duty. Now whether the CVD paid can be claimed as refund mentioning the said exemption notification ?

Posts / Replies

[Pradeep Khatri]

Yes you can file refund application.Section 27 of the Customs Act, 1962 refers in this regard. Principle of unjust enrichment will also applicable in these matters. You will have to file refund application within one year. Proviso 2 (a) of Section 27 of the Customs Act,1962 will also applicable.

[Ravi Chopra]

Yes, you can get the refund of CVD paid at the time of import which was exempted otherewise by way of an exemption notification under central excise. But, you refund application must be within the period of one year.

[Prabhakar V]

Ofcourse, reund provisions are there for claiming the erroneouse payment. But there are chances of the same is hit by unjustenrichment clause where the the sanctioned amount will be credited to the consumers account if sufficient documentary evidence is not provided towards proving the "unjustenrchment". One more method is to claim CVD paid as cenvat credit, provided the terminal product is excisable. Hear also a legal debate may arise on the elibility part of whether the duty paid on exemptied products can be treated as duty for the purpose of allowing the Cenvat. Ofcourse, in such case it can be contested before the adjucating forums. Based on the quantum of amount involved and a decission is to be taken which one is the approprate way to the duty paid.