4.96

Recovery Mechanism

a. The record of shipping bills and other documents related to export, is required to be maintained by the applicant for a period of 3 years from the date of issuance of scrip for post issue scrutiny and recovery purposes. Licensing Authority may call such documents in original at anytime within 3 years. In case the applicant fails to submit the original documents on demand by Licensing Authority, the applicant shall be liable to refund the rebate granted along with interest at the rate prescribed under Section 28AA of Customs Act, 1962, from the date of issuance of scrip.

b. Also, there can be instances, where based on the application of the exporter, amount more than the eligible amount has been issued under RoSCTL, while adjusting for MEIS or otherwise. In such cases, concerned RA will examine the relevant scrip’s electronic records and in case, an excess claim/ excess disbursal is noted by the RA, the applicant shall refund the excess claim with interest as prescribed in paragraph 3.19 of FTP.

c. In case the applicant fails to refund the excess claim as stipulated above or does not respond to any communication by RA within 30 days of receipt of such communication, RA will initiate action as per FT (D&R) Act, 1992 and Rules.

d. The rebate allowed is subject to the receipt of sale proceeds within time allowed under the Foreign Exchange Management Act, 1999 failing which such rebate shall be deemed never to have been allowed. Action under the FT (D&R) Act,1992 may be taken by the Regional Authorities for repayment of erroneous or excess paid RoSCTL. Further, the exporter is required to return any over-payment of rebate issued through the scrips arising from miscalculation. Where-ever recovery of such excess paid is due, interest shall also be paid by exporter at the rate of fifteen percent per annum calculated from the date of debit of the scrip till the date of repayment. In case the exporter returns the un-utilized scrips, no interest will be charged, however, penalty may be imposed under an Adjudication order on the grounds of mis-declaration or fraudulent practice.

(Above para 4.96 has been revised vide PUBLIC NOTICE NO. 58/2019, DT. 29/01/2020)

[OLD - 4.96

Recovery Mechanism

a. The record of shipping bills and other documents related to export, is required to be maintained by the applicant for a period of 3 years from the date of issuance of scrip for post issue scrutiny and recovery purposes. Licensing Authority may call such documents in original at anytime within 3 years. In case the applicant fails to submit the original documents on demand by Licensing Authority, the applicant shall be liable to refund the rebate granted along with interest at the rate prescribed under Section 28AA of Customs Act 1962, from the date of issuance of scrip.

b. Also, there can be instances, where based on the application of the exporter, amount more than the eligible amount has been issued under RoSCTL; in such cases, concerned RA will examine the relevant scrip’s electronic records and in case, an excess claim/ excess disbursal is taken note of by the RA, the RA would request the firm to explain the discrepancy. In case an excess grant of rebate is established, the applicant shall refund the excess claim with interest as prescribed in paragraph 3.19 of FTP

c. In case the applicant fails to refund the excess claim as stipulated above or does not respond to any communication by RA within 30 days of receipt of such communication, RA will initiate action as per FT(D&R) Act and Rules.

d. The rebate allowed is subject to the receipt of sale proceeds within time allowed under the Foreign Exchange Management Act, 1999 failing which such rebate shall be deemed never to have been allowed. Action under the FT(D&R) Act may be taken by the Regional Authorities for repayment of erroneous or excess paid RoSCTL. Further, the exporter is required to return any over-payment of rebate issued through the scrips arising from miscalculation. Where there is repayment, recovery or return, interest shall also be paid by exporter at the rate of fifteen percent per annum calculated from the date of debit of the scrip till the date of repayment. In case the exporter returns the un-utilized scrips, no interest will be charged, however, penalty may be imposed under an Adjudication order on the grounds of mis-declaration or fraudulent practice.]

(Above Para 4.95 has been added vide PUBLIC NOTICE NO. 83/2018, DT. 29/03/2019)