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Q 357: I wish to understand the provisions and procedure of Refund of Import Duty.
A: 7) Sec. 27 deals with Claim for refund of duty.
(1) Any person claiming refund of any duty or interest,
(a) paid by him; or (b) borne by him, may make an application in such form and manner as may be prescribed for such refund to the AC/DC of Customs, before the expiry of 1 year, from the date of payment of such duty or interest.
* Provided further that the limitation of 1 year shall not apply where any duty or interest has been paid under protest.
* Provided also that where the amount of refund claimed is less than Rs 100, the same shall not be refunded.
(1A) The application under sub-section (1) shall be accompanied by such documentary or other evidence as the applicant may furnish to establish that the amount of duty or interest, in relation to which such refund is claimed was collected from, or paid by him and the incidence of such duty or interest, has not been passed on by him to any other person.
(1B) The period of limitation of 1 year shall be computed in the following manner, namely-
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(a) |
in the case of goods which are exempt from payment of duty by a special order issued, the limitation of 1 year shall be computed from the date of issue of such order; |
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(b) |
where the duty becomes refundable as a consequence of any judgment, decree, order or direction of the Appellate Authority, Appellate Tribunal or any court, the limitation of 1 year shall be computed from the date of such judgment, decree, order or direction; |
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(c) |
where any duty is paid provisionally, the limitation of 1 year shall be computed from the date of adjustment of duty after the final assessment/re-assessment. |
(2) If, on receipt of any such application, the 4 [AC/DC of Customs] is satisfied that the whole or any part of the [duty and interest, if any, paid on such duty] paid by the applicant is refundable, he may make an order accordingly and the amount so determined shall be credited to the Fund:
*Provided that the amount of [duty and interest, if any, paid on such duty] as determined by the [AC/DC of Customs] under the foregoing provisions of this sub-section shall, instead of being credited to the Fund, be paid to the applicant, if such amount is relatable to –
* Provided further that no notification under clause (f) of the first proviso shall be issued unless in the opinion of the Central Government the incidence of duty and interest, if any, paid on such duty, has not been passed on by the persons concerned to any other person.
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(a) |
the [duty and interest, if any, paid on such duty paid] by the importer, [or the exporter, as the case may be] if he had not passed on the incidence of such [duty and interest, if any, paid on such duty] to any other person; |
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(b)
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the [duty and interest, if any, paid on such duty] on imports made by an individual for his personal use; |
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(c) |
the [duty and interest, if any, paid on such duty] borne by the buyer, if he had not passed on the incidence of such [duty and interest, if any, paid on such duty] to any other person; |
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(d) |
the export duty as specified in section 26; |
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(e) |
drawback of duty payable under sections 74 and 75; |
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(f) |
the [duty and interest, if any, paid on such duty] borne by any other such class of applicants as the Central Government may, by notification in the Official Gazette, specify: |
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(g) |
the duty paid in excess by the importer before an order permitting clearance of goods for home consumption is made where -
(i) such excess payment of duty is evident from the bill of entry in the case of self-assessed bill of entry; or
(ii) the duty actually payable is reflected in the reassessed bill of entry in the case of reassessment.
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(3) Notwithstanding anything to the contrary contained in any judgment, decree, order or direction of the Appellate Tribunal, National Tax Tribunal or any Court or in any other provision of this Act or the regulations made thereunder or any other law for the time being in force, no refund shall be made except as provided in sub-section (2).
(4) Every notification under Clause (f) of the first proviso to sub-section (2) shall be laid before each House of Parliament, and some guidelines are provided which should be followed.
(5) Any notification issued under Clause (f) of the first proviso to sub-section (2) can be rescinded.