Refund of 4% Special Additional Duty Procedure
Revised Calculation Work
Sheet Notified Mandatory from 1 June 2010
The following Facility Notice was issued by the Commissioner of Customs
(Import) Jawaharlal Nehru Customs House on 12th May 2010.
[Customs Facility Notice No. 53 dated 12th May
2010]
Subject:
Streamlining the procedure for refund of 4% Additional Duty of Customs in
pursuance of Notification No. 102/2007-Customs dated 14.9.2007.
1. Attention of all importers, members of trade, their agents and all
concerned is invited to Customs Notification No. 102/2007-Cus. dated
14/09/2007, exempting Addl. Duty of Customs (SAD) leviable
under Section 3(5) of the Customs Tariff Act on goods imported for subsequent
sale, Board’s Circular Nos.06/2008 & 16/2008-Customs, clarifying various related issues and this Custom House Public Notice Nos. 43/2008 & 04/2009
prescribing documents and the procedure for refund of the same.
2. It has been brought to notice that although the CBEC
Circular No. 16/2008-Cus. Dated 13/10/2008 prescribes acceptance of copies of
ST/VAT challans along with the certificate of the
statutory auditor / Chartered Accountant, this Custom
House requires submission of VAT/ ST Challans,
duly certified by the statutory auditor/ Chartered Accountant of the importer, in terms of Public Notice No. 04/2009 dated
02/02/2009. It has been pointed out that in many cases the Chartered
Accountants are not willing to certify the VAT/ ST Challans
and they charge a fees for certifying every VAT/ ST Challans. Therefore, it is expensive, cumbersome and time
consuming procedure, especially in cases where interstate/ multiple state sales
are involved and there are thousands of VAT/ ST/ CST Challans,
which are to be certified by the Chartered Accountant.
3. The issue has been examined and it
is noticed that CBEC circulars on the subject do not prescribe submission of
copy of ST/VAT Challan certified by the Chartered
Accountant for
sanction of refund. It is further seen that the statutory
auditor / Chartered Accountant is also issuing a certificate in proforma at Annexure II to the Public Notice No. 04/2009 which gives details of each VAT/ ST Challans and / or evidence for adjustment of input tax
credit as effective discharge of ST/VAT payment on imported goods. As each ST/VAT Challan number and date and the amount paid under
each challan is specified in the certificate, further
certification of each copy of ST/VAT Challans does not serve any useful purpose.
4. In view of above, it has been decided that henceforth, copies of ST/VAT Challans
along with a certificate of the statutory auditor/
Chartered Accountant, as
per the proforma annexed to this Facility Notice, shall be accepted for the purpose of
sanction of refund of SAD. This will be subject to requiring the original ST/VAT payment challans
or other similar documents, in doubtful cases, which shall be returned to the
importer after verification, as per the instructions of the Board in Circular
No.16/2008-Customs.
5. Apart from this it has been
noticed that presently the claimants are required to submit four different
certificates from statutory
auditor/ Chartered Accountant in Annexures ‘D’, ‘II’,
‘III’ and ‘IV’. This not only is expensive, cumbersome and time consuming but also creates lot of
duplication and confusion as a result of which many a times
the importers get certified their other documents from the Chartered
Accountant which in fact
are not so required. Therefore, in order to avoid duplication and make
it simple, it has
been decided to merge the
various certificates from statutory auditor/ Chartered Accountant in Annexures ‘D’, ‘II’, ‘III’ and ‘IV’ into a single
certificate in format Annexure ‘S’, enclosed to this Facility Notice.
6. It is further
noticed that the calculation work sheet for refund as per Annexure-A to Public
Notice No. 43/2008 dated 06/06/2008 emphasizes on unnecessary details without
referring to import and sale quantity, which are essential for calculation of
correct refund amount. Therefore, it
has been decided to modify
the format for calculation work sheet for refund as per revised Annexure-A, enclosed
to this Facility Notice.
7. Public Notice
Nos. 43/2008 dated 06/06/2008 and 04/2009 dated 02.02.2009 stand modified to the
extent mentioned above. The instructions for acceptance of copies of ST/VAT Challans along
with a certificate of the
statutory auditor/ Chartered Accountant
shall come into force from immediate effect and shall also apply to all pending
claims. The revised Annexure-‘A’
and Annexure-‘S’ shall be mandatory from 1st June 2010 but these may be
voluntarily adopted with immediate
effect.
8. All Trade and
the industrial association are requested to bring the contents of this Public
Notice to the knowledge of
their members.
F.No.S/26-Misc-04/2010-11 CRC IV
Revised Annexure-A
Calculation Work Sheet for SAD Refund
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Bill of Entry No. |
Date |
Quantity Imported (Kg./MT/Pcs/
Bags/CTNs/ Nos./ltrs/CBM) |
Quantity Sold (Kg./MT/Pcs/
Bags/CTNs/ Nos./ltrs/CBM) |
SAD paid (Rs.) |
SAD claimed (Rs.) |
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Place:
Date: For M/s. ________
Signature of the Applicant.
Annexure - S
Consolidated Certificate
from the statutory auditor / Chartered Accountant towards unjust enrichment,
payment of appropriate ST/VAT, correlating payment of ST/VAT with the sale
invoices and sale through consignment agent/stockist
for the purpose of refund of the Special Additional Duty in pursuance to
Notification No. 102/2007-Customs
dated 14/09/2007.
With regard
to the imports under Bill of Entry No. ________ dated _______ and TR6 Challan No.
__________ dated _______, wherein the Special Additional Duty has been paid and
the refund under Notification No. 102/2007 dated 14/09/2007,
is sought by M/s. _________.
2. If certified that we are the statutory auditor/ Chartered
Accountants, who certifies financial records under the Companies Act, 1956/ any
ST/VAT Act of the State Government/ the Income Tax Act, 1961 or any other
statue, of M/s. _________.
3. For purpose of fulfillment of the condition in Para 2 (d) of the
Notification No. 102/2007 dated 14-09-2007 and for considering sanction of refund of 4% SAD, we hereby certify
that we have verified the original invoices of sale, along with supporting
documents towards proof of payment of appropriate ST/VAT from the original VAT/
ST Challans and / or evidence for adjustment of input
tax credit, as effective discharge of ST/VAT payment on imported goods
4. The VAT/ ST has been paid as below:-
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S.No. |
Amount of VAT
payable |
Amount of VAT
paid by Cash Challans |
Amount of VAT paid
by adjustment of input tax credits |
Details of S.
No. and Date of the entries verified
from the records of the VAT Tax payer |
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Date |
S. No. |
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5. The refund being claimed herein is being shown in the Books of
Account / Balance Sheet as “Amount due as refund of Additional duty of Customs”
and same amount has not been passed on to the buyers of the sale of goods.
After examination / audit the records, it is verified from records that the
details as given in the enclosed Summary of Sale invoices are true details
thereof. As required for examination of the principle of unjust enrichment in
the case before sanction of refund under Notifn. No.
102/2007 dated 14/09/2007, this is certified that the burden of 4%
6. In case of sale through
consignment agent/stockist we certify that-
(i) consignment agent/stockist
M/s _________has been authorised to sell the imported goods in terms of the
agreement entered into between the importer M/s __________ and consignment
agent/stockist M/s _________;
(ii) that
each of the sale invoices issued by the consignment agent/stockist
indicates that the sale is made by him on behalf of the importer in the
capacity of consignment agent/stockist.
(iii) that
appropriate ST/VAT has been paid by consignment agent/stockist
M/s _______ on behalf of importer M/s ________ and that the importer, M/s
________ in turn, has paid or reimbursed the ST/VAT to his consignment agent/stockist M/s __________ along with the correlation of
ST/VAT payment with 4% CVD paid on imported goods.
Place:
Date: Chartered Accountant