How to file claim for refund of excise duty

860 votes

Section 11B of the Central Excise Act, 1944 governs the refund of excise duty. Chapter of the CBEC manual on Refund contains the detailed procedure with respect to the refund of the duty of excise. The refund claim can be filed within one year from the relevant date in the specified Form by an assessee or even a person who has borne the duty incidence, to the Deputy/Assistant Commissioner of Central Excise having jurisdiction over the factory of manufacture. The limitation of one year does not apply where any duty has been paid under protest. The relevant date has been defined in section 11B and refund of duty paid can be sought provided the manufacturer has not passed on the burden of duty. In case the burden of duty has been passed on, the refund can be claimed by the person who has actually paid the duty otherwise the amount is liable to be deposited in the Consumer Welfare Fund created by the Statute. The Central Excise Act also provides for payment of interest on delayed payment of refund. As per Section 11BB, if any duty ordered to be refunded under Section 11B has not been refunded within three months from the date of receipt of the refund application in the prescribed manner and form along with the supporting documentary evidence as laid down in the relevant rules, interest at the rate notified by the Central Government shall have to paid on such duty from the date immediately after the expiry of three months from the date of receipt of application till the date of refund of such duty. Any person, who deems himself entitled to a refund of any duties of excise or other dues, or has been informed by the department that a refund is due to him shall present a claim in proper Form, along with all the relevant documents supporting his claim and also the copies of documents/records supporting his declaration that he has not passed on the duty of incidence. The claim should be filed with the Deputy/Assistant Commissioner of Central Excise with a copy to the Range Officer. The claim is to be presented in duplicate and is to be duly signed by the claimant or by duly authorised person on his behalf and shall be pre-receipted (with revenue stamp on original copy, where necessary ). It may not be possible to scrutinise the claim without the accompanying documents and decide about its admissibility. If the claim is filed without requisite documents, it may lead to delay in sanction of the refund. Moreover, the claimant of refund is entitled for interest in case refund is not given within three months of filing of the claim. Consequently, submission of refund claim without supporting documents will not be allowed. Even if claim is filed by post or similar mode, the claim should be rejected or returned with Query Memo (depending upon the nature/importance of the document not filed). The claim shall be taken as filed only when all relevant documents are available. In case any document is not available for which the Central Excise or Customs Department is solely accountable, the claim may be received so that the claimant is not hit by limitation period.

Advocate Sanskar Rajendra Nagar LawRato