Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs
Circular No.23 / 2010-Customs
159A, North Block,
New Delhi -110001.
29th July, 2010.
To
All Chief Commissioners of Customs / Customs (Prev.).
All Chief Commissioners of Customs & Central Excise.
All Commissioners of Customs / Customs (Prev.).
All Commissioners of Customs & Central Excise.
Subject: Refund of 4% Additional Duty of Customs (4% CVD) in pursuance of
Notification No.102/2007-Customs dated 14.9.2007 – Disposal of claims in respect
of cases where assessments are provisional – reg
Sir / Madam,
Your kind attention is invited to the
Notification No.102/2007-Customs dated
14.9.2007,
Notification No.93/2008-Customs dated 1.8.2008 and Board’s
Circulars
No. 6/2008-Customs dated 28.4.2008, No.16/2008-Customs dated 13.10.2008,
No.6/2009-Customs dated 9.2.2009 and
No.18/2010-Customs dated 8.7.2010
containing instructions on the procedure to be followed by the Customs field
formations in case of 4% CVD refund claims.
- References have been received by the Board pointing out that divergent
practices are being followed as regards sanction of 4% CVD refund claims in the
cases where assessments are provisional. It has been reported that in some
Custom Houses, ‘date of payment’ of duty is being considered as date for
determining the prescribed period of one year in terms of the Notification
No.93/2008-Customs dated 1.8.2008, whereas in other Customs Houses, the relevant
date is the date of finalization of provisional assessment and accordingly, the
importers in those Customs Houses are filing refund claim within one year of
finalization of assessment. It was requested that a suitable clarification be
issued by the Board in order to ensure uniformity in procedure.
- The matter has been examined in the Board. As per the Board Circular
No.6/2008-Customs dated 28.4.2008, the limitation of time under Section 27 of
the Customs Act, 1962 is not applicable in cases relating to refund claims of 4%
CVD. The refund of 4% CVD is admissible in terms of Notification
No.102/2007–Customs dated 14.9.2007 read with Notification No.93/2008-Customs
dated 1.8.2008 issued under Section 25(1) of the Customs Act, 1962 subject to
fulfillment of certain conditions as envisaged in the said notifications. The
time limit prescribed for the purpose of 4% CVD refund claim is one year from
the date of payment of duty as per the said Notifications. Hence, in cases where
the assessment is provisional, for the purpose of sanction of refund of 4% CVD,
the date of payment of duty would be, the date of payment of CVD at the time of
import of goods and not the date of finalization of provisional assessment. The
Importer, therefore, would be eligible to get the refund, if the claim is filed
within one year of the date of actual payment of 4% CVD i.e. the date of payment
of duty at the time of clearance of imported goods.
- Board, has, accordingly decided that all pending 4% CVD refund claims under
Notification No.102/2007-Customs dated 14.9.2007 and Notification No.
93/2008-Customs dated 1.8.2008 should be disposed of despite the fact that the
assessment continues to be provisional without awaiting for finalization of
assessments.
- A suitable Public Notice and Standing Order may be issued for the guidance of
the trade and staff.
- Difficulties faced, if any, in implementation of this Circular may be brought
to the notice of the Board at an early date.
Yours faithfully,
(R. P. Singh)
Director (Customs)
F.No.401/104/2007-Cus.III
Copy for internal circulation – As usual.