Circular No. 130/41/95-CX dated 30/5/95

Subject: Interest on delayed refunds (proposed Section IIBB) - Regarding

Your attention is invited to the Finance Act, 1995 wherein a new section I IBB under Central Excise & Salt Act, 1944 has been inserted regarding interest on delayed refunds. With the enactment of the Finance Act, the Department has become liable to pay interest at the prescribed rate in case of various types of refund which are not processed within three months from the date of the receipt of refund applications under section IIBB of CE&SA, 1944, till the date of refund of such duty. In this regard you may also refer to Notification No. 22/95-CE(NT) dated 29.5.95. which fixes such interest @15% payable in respect of such delayed refunds.

2. Keeping the above in view, the following instructions are being issued regarding refunds claimed under section IIB of CE&SA, 1944:-

a) Refund application must invariably be filed in the office of the Asstt. Collector and Not with the Range Superintendent.

b) Immediately on receipt of an application, the same must be scrutinized by an officer, not below the rank of an Inspector for its completeness.

c) Preliminary scrutiny should be carried out with regard to completeness of the information in the proforma already prescribed, verification of supporting documents to substantiate the refund claim and to evidence payment of duty.

d) An acknowledgement should be issued immediately after the above mentioned verification which will be an evidence of the receipt of refund application in terms of section IIBB. The period of 3 months in terms of section I IBB shall be counted from the date following the date of receipt of refund application up to the date of despatch of cheque for refund.

e) The Collectors should direct the Divisional Assistant Collectors to designate an officer by name who will carry out the initial verification and issue the acknowledgement thereof.

f) Such acknowledgment must Be issued within 48 hours of the receipt of the refund application, excluding holidays.

g) Where the refund application is found to be incomplete a letter shall be issued stating the deficiencies therein, the additional information /document required with in 48 hours of the receipt. In such cases the letter shall be issued only with the approval of a Superintendent and the period of 3 months, for purpose of section 11 BB, shall count from the date of receipt of all the requisite information or documents.

h) The Collectorate may use a cyclostyled proforma for the purpose of intimating the deficiencies or for acknowledgement of the receipt of the refund application.

i) Check-lists of various documents which should be filed with the refund claims of different types are annexed herewith to be used as guidelines. However, the list may not be treated as exhaustive and any other documents, if required, may be included therein and called for from the assessee.

Sd/-
(Mallika Arya)
Under Secretary to the Govt. of India

F.N0.268/29/95-CX-8

Annexure

Check List of various documents which should be filed with the Refund Claims

1. Rebate of duty of excisable goods exported out of India or on excisable materials used in the manufacture of goods which arc exported-out of India:-

— Application in prescribed form Annexure-65.

- Original copy of AR-4

- Duly attested copy of Bill of Lading/Airway Bill

— Duly attested copy of Shipping Bill/(export promotion copy).

- Disclaimer certificate (in case where claimant is other than exporter).

- Quadruplicate copy of invoice evidencing payment of duty.

2. unspent advance deposits lying in balance in applicant"s account current:

— Latest abstract received from CAO

- PLA Register

3. Refund of credit of duty paid on excisable goods used as inputs in accordance with rule 57F:-

— Relevant extract (in original) of RG-23A (Part I and II).

- Duly attested copy of Bill of Lading.

— Duly attested copy of Shipping Bill.

— Original copy of AR-4 where-over renewal for export take under cover of AR-4.

4. Duty of excise paid by the manufacturer, if he had not passed incidence of such duty to any other person:-

— Quadruplicate invoices issued under rule 52A indicating amount of excise duty.

— Triplicate copy of the relevant PLA/RG-23A Pt.II/copy of challans under which deposits were made into Bank.

— Calculation sheet indicating details for arriving at the amount of refund claim.

— In case of payment of duty under protest, the evidence to the effect that duty was paid under protest in terms of Rule 233 B of Central Excise Rules 1944.

— Documentary evidence to show that the incidence of duty has not been passed on by the assessee to any other person.

— Copy of the order in original/order in appeal/Court"s order in pursuance of which the refund claim has been lodged.

5. Refund on duty paid goods brought into the factory for remaking/reprocessing (Rule 97,173L):-

— Copy of D-3.

— Quadruplicate copy of invoice under which duty on goods was originally paid.

— Duplicate copy of invoice under which goods have been received back for remaking/reprocessing indicating payment of duty/duty reversed.

— Abstract of Form V Register.

6. Refund of deposits for units working under the compounded levy scheme:

— TR-6 challans or any other documents to show initial deposit.

— Relevant copies of the current account register maintained by the assessee.

7. Refund of the purchased price of the un-used or damaged Central Excise Stamps (Rule 99):-

— Refund application in prescribed form.

— Un-used/damaged Central Excise Stamps/labels on which the refund is claimed.

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