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What is the procedure for refund of customs and excise duty in India?

What is the procedure for refund of customs and excise duty in India?

11-Mar-2023

Customs & Central Excise

Answer By law4u team

The procedure for refund of customs and excise duty in India depends on the nature of the duty and the circumstances under which the refund is being claimed. However, in general, the following steps are involved in the refund process: Filing of refund claim: The first step in claiming a refund of customs or excise duty is to file a refund claim with the appropriate authority. The refund claim must be filed within the prescribed time limit and must be accompanied by all necessary documents such as invoices, bills of entry, and proof of payment of duty. Verification of refund claim: Once the refund claim is filed, the appropriate authority will verify the claim and may ask for additional information or documents if required. The authority may also conduct a physical verification of the goods for which the refund is being claimed. Processing of refund claim: After the refund claim is verified, the appropriate authority will process the claim and determine the amount of refund payable. If the authority is satisfied that the refund is admissible, it will issue a refund order and credit the amount of refund to the claimant's bank account. Appeal and review: If the claimant is not satisfied with the amount of refund granted, he or she may file an appeal with the appropriate appellate authority. The appellate authority will review the claim and may modify the refund order if required. It is important to note that the procedure for refund of customs and excise duty may vary depending on the nature of the duty, the circumstances under which the refund is being claimed, and the applicable laws and regulations. It is advisable to consult with a customs or excise expert to understand the exact procedure for claiming a refund of customs or excise duty in a specific case.

Answer By Anik

DEAR CLIENT, In India, the refund of customs and excise duty is governed by the customs act, 1962 and the central excise act, 1944, along with other rules and regulations framed under the act. The process for claiming a refund involves the following steps. Eligibility for refund: Refund of customs and excise duties can be claimed under these following circumstances: • Excess payment • Duty drawback • Provisional assessment • Special circumstances Time limit for claiming refund: Under the section 27 of the customs act and section 11B of the central excise act a refund claim must be filled within one year from the date of payment. There are cases where the duty Is paid under protest the limitation period does not apply. Filing a refund claim: The refund claim applications must be submitted to the jurisdictional customs or excise authority in the prescribed form R or form of refund applications along with: • Proof of duty payment • Supporting invoices and export documentations • Proof that the duty burden was not passed on Verification and processing: The department verifies the applications and evidence. if found valid, the refund is sanctioned typically within the 3 months. The interest is payable if the refund is delayed beyond this period. Appeal process: If the refund is denied the applicant can appeal to the said commissioner and subsequently to the customs, excise and service tax appellate tribunal. Hence this process ensures that duty payments are accurately refunded while preventing unjust enrichment. WE HOPE THIS CLARIFIES YOUR QUERY. PLEASE FEEL FREE TO REACH OUT FOR FURTHER ASSISSTANCE. THANK YOU.

Answer By Ayantika Mondal

DEAR CLIENT, In the Indian law, the procedure for obtaining a refund of customs and excise duty is governed by various provisions under the customs act, 1962 and the central excise act, 1944 along with their respective rules and notifications. Filing of applications: A refund application must be filed in the prescribed form usually form B under the customs rules, 1995. The applications must be submitted to the jurisdiction customs officer. Time limit: the applications for refund must be filed within six months form the date of payment of duty, unless and until the case falls under the specific exemptions. Documentary requirements: the applicant must be providing supporting documents such as the original duty payments receipt customs clearance document and any other relevant permissions or orders. Scrutiny and processing: the application will be scrutinized by the customs authority. Payment of refund: refunds are typically paid through electronic transfer to the bank account of the applicant. Other important steps: • Filing of claim • Time limit • Verification and processing • Communications of decision In both the customs and excise duties in case the application is rejected the applicant has the right to appeal to the rights authorities as per the respective acts. It’s the crucial to which ensures that all the claims are supported by the valid documentations to avoid delays or rejections. WE HOPE THIS CLARIFIES YOUR QUERY. PLEASE FEEL FREE TO REACH OUT FOR FURTHER ASSISSTANCE. THANK YOU.