Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
Service Tax Wing
Circular No. 187/6/2015-Service Tax
New Delhi, dated 10th November, 2015
To
All Principal Chief Commissioners of Central Excise
All Chief Commissioners of Central Excise/Service Tax
Principal Directors General of Goods & Services Tax/Systems/ Central Excise
Intelligence
Director General of Audit/Tax Payer Services
All Principal Commissioners/Commissioners of Central Excise/Service Tax
All Commissioners of Central Excise/Service Tax(Audit)/ Principal
Commissioners/Commissioners LTU, Joint Secretary TRU-I/TRU-II/Review
Commissioner Central Excise/Legal/PAC/Taxpayer Services
Madam/Sir
Subject: Speedy disbursal of pending refund claims of exporters of services
under rule 5 of the CENVAT Credit Rules, 2004
The Board has been issuing instructions from time to time relating to the
sanction and disbursal of refund claims under various notifications. A
simplified procedure for sanction of refund for select categories of exporters
was outlined vide
Circular No. 828/5/2006-CX dated 20-4-2006 issued from F. No.
268/4/2005-CX-8. This year having been declared as the Year of Taxpayer
Services, the Board has accorded primacy to speedy sanction of refunds in case
of export of services. Keeping in mind the various legal changes in service tax
since 2006 and the various representations received in this regard, I am
directed to inform you that the following scheme has been drawn up to fast track
sanction of refund of accumulated CENVAT credit to exporters of services. This
scheme is not a substitute for the various notifications but is meant to
complement them and is aimed at enabling ease of doing business.
2.0 Applicability of the scheme
2.1 This scheme is applicable to service tax registrants who are exporters of
services, with respect to refund claims under rule 5 of the CENVAT Credit Rules,
2004, which have been filed on or before 31-3-2015, and which have not been
disposed of as on date of the issue of this circular. Such registrants will be
referred to as ‘claimants’ in the subsequent paragraphs.
2.2 The phrase ‘disposed of ’ in this context refers to either sanction of
refund or denial, either in whole or in part, by way of an adjudication order.
Refunds which had been finalized earlier by issuance of an adjudication order
but have been remanded back to the original sanctioning authority will not be
covered under this scheme since re-examination of such claims will have to be
done strictly in terms of the remand order of the Commissioner (Appeals)/
CESTAT/ High Court.
3.0 Additional documents to be submitted (i.e. in addition to those required to
be filed along with the claim)
3.1 A certificate from the statutory auditor in the case of companies, and from
a chartered accountant in the case of assessees who are not companies, in the
format given in Annexure-1.
3.2 An undertaking from the claimant in the format given in Annexure-2.
4.0 Operation of the scheme
4.1 On receipt of the documents referred to in paragraph 3.1 and 3.2 above in
respect of pending claims, the jurisdictional Deputy/Assistant Commissioner will
give a dated acknowledgement to the claimant. He will then make a provisional
payment of 80% (eighty per cent) of the amount claimed as refund, within five
working days of the receipt of the documents.
4.2 The letter intimating the provisional payment should be in the format given
in Annexure-3. It is clarified that this payment of 80% of the refund amount
shall be purely provisional, based on the documents referred to in paragraphs
3.1 and 3.2 above and without prejudice to the department’s right to check the
correctness of the claim in terms of the relevant notification and recover any
amount which has been provisionally paid. It is also clarified that the decision
to grant provisional payment is an administrative order and not a quasi-judicial
order and should not be subjected to review.
4.3 After making the provisional payment, the jurisdictional Deputy/Assistant
Commissioner shall undertake checking the correctness of the refund claim in
terms of the relevant notification.
4.4 During the course of verification, it may appear that a part of the amount
claimed as refund is inadmissible. In such cases, a show cause notice (SCN) has
to be issued asking the claimant to show cause why the inadmissible amount
should not be denied and wherever relevant, why any amount which has been
provisionally paid should not be recovered. However, prior to the issuance of
such a SCN, the claimant may be intimated about the inadmissible amount so that
he has an opportunity to avail of the provisions of section 73(3) of the Finance
Act, 1994. A speaking, appealable order will have to be passed with respect to
the SCN. This order will be reviewed by the jurisdictional Commissioner.
4.5 If during review of the refund order, any further amount is found to be
inadmissible, then, apart from filing an appeal for setting aside or modifying
the relevant portion of the order, a SCN will also have to be issued for the
amount not covered by the original SCN. However, prior to the issue of such a
SCN, the claimant may be intimated about the inadmissible amount so that he has
an opportunity to avail of the provisions of section 73(3) of the Finance Act,
1994.
5.0 Monitoring and reporting
5.1 An MIS report in the format specified in Annexure-4 may be sent by the tenth
of every month by email to commr.st-cbec@nic.in
5.2 Principal Commissioners/Commissioners should ensure that the provisional
payment of refunds is done strictly in terms of the time lines specified and
that there are no complaints regarding delays. They should also ensure that the
staff dealing with refunds are adequately familiarised about this scheme so that
it operates smoothly.
6.0 Publicity
6.1 Principal Chief Commissioners/Chief Commissioners should ensure that the
contents of this circular are brought to the notice of the claimants as well as
the departmental officers.
Yours faithfully,
(Himani Bhayana)
Under Secretary (Service Tax)
F. No. 137/62/2015-Service Tax
Annexure-1
To
The Deputy/Assistant Commissioner of Central Excise/Service Tax
Date:
Madam/Sir
1.0 This is to certify that for M/s____________ , STC__________No.
1.1 The refund claim for Rs for the quarter is complete in all aspects with all
the relevant documents and has been filed within the prescribed time limit.
1.2 The amount of Rs.____________ claimed as refund for the
quarter______________ by M/s. ____________ in their application for refund
dated_________ is correct as per their books of accounts and relevant records
and the same is in accordance with the provisions of rule 5 of the CENVAT Credit
Rules, 2004, read with the notification no. ____________ issued thereunder.
1.3 M/s___________is eligible to take CENVAT credit in terms of the CENVAT
Credit Rules, 2004, for the amount which is being claimed as refund.
1.4 The services which are claimed to be exported, qualify to be treated as
exports in terms of the rules in force at the time of the said export.
Signature of the statutory auditor/chartered accountant/
authorized signatory of the statutory auditor/chartered accountant
Annexure-2
To
The Deputy/Assistant Commissioner of Central Excise/Service Tax
Date:
M/s ________________ , STC No. _______________ hereby undertake that for any
amount provisionally paid to me for the refund claim for Rs._____________ for
the quarter __________, filed on ___________, in case there is a difference
between the amount provisionally paid to me and the amount found to be
admissible, I shall pay the said differential amount upon intimation about its
inadmissibility, along with applicable interest thereon.
Signature of the claimant
Annexure-3
To,
M/s
STC No.
Date:
Subject: Provisional payment of amount claimed as refund
Please refer to your refund claim filed for the quarter_______________for an
amount of Rs._________filed on _________.
2. On the basis of the certificate date________ issued by the statutory auditor
M/s_________________Chartered Accountant M/s_______________ ————–
dated_____________, received in this office on__________provisional payment of
the amount of Rs ______________ is hereby made vide cheque
No._____________dated____________on ___________ Bank,__________,
3. This provisional payment of 80% of the refund amount is purely provisional
and without prejudice to the right of the office of the Commissioner of Central
Excise/Service Tax, _____________to check the correctness of the claim in terms
of the relevant notification and recover the difference, if any, between‑
3.1 the amount provisionally paid and the amount held to be admissible; and
3.2 any amount which appears to have been erroneously refunded.
Signature of Deputy/Assistant Commissioner of Central Excise/Service Tax
Annexure-4
MIS Report – Speedy disbursal of pending refund claims of exporters of services
under rule 5 of the CENVAT Credit Rules, 2004
Zone: |
Month: |
(Amount in ₹ lakhs) |
Refund claims
pending as on
31-3-2015 |
Claims for which documents
(as required in Para 3 of the
Circular) have been submitted |
Amount of Provisional payment made (Para 4.1 of
the circular) |
No. |
Amount |
No. |
Amount |
No. |
Amount |
|
|
For
the Month |
Upto the Month |
For
the Month |
Upto the Month |
For
the Month |
Upto the Month |
For
the Month |
Upto the Month |
|