Refund & Rebate of Central Excise duties paid
Refund of any duty of excise is governed by Section 11B of the Central Excise Act, 1944. A claim for refund of duty is quite often caused by a previously completed activity. The possible activities, which may result into a refund claim application, are listed below:
® Deposit in current a/c, in excess of required debit
® Wrong calculation of Rate of Duty
® The actual quantity of clearance is wrongly stated
® The actual value of clearance is wrongly stated
® SSI wrongly pays duty before reaching exemption threshold
® Consequential Refunds
® Section 11C exemption
® Section 5 A (2) special exemption order
® Compounded Levy Scheme
® Provisional Assessment
The legal provision governing Refund is Section 11B of Central Excise Act, 1944. It is to be noted that by definition, refund includes rebate of Central Excise duty paid on goods exported out of
. Rebate is also available for materials used in the manufacture of goods exported out of India . There are two chapters exclusively dealing with Refunds and Rebates in CBEC’s Central Excise Manual. While Chapter 8 deals with Export under claim of Rebate, Chapter 9 of Central Board of Excise and Custom’s manual covers Refunds. India
Rules relating to Rebates:
Rebates (Rule 18): As per rule 18 of CER, 2002, rebate of duty paid on excisable goods or duty paid on materials used in the manufacture or processing of such excisable goods can be granted as rebate subject to conditions and limitations and fulfillment of such conditions and following of procedures as may be specified in the notification issued under this rule.
Rebate - Notifications issued under Rule 18 of CER, 2002
1) Rebate of duty on export of goods to all countries other than
and Nepal - Notification No.19/2004-CE (NT) dt. 6-9-2004 as amended Bhutan
2) Rebate of duty on export of goods to
and Nepal – Notification No.20/2004-CE (NT) dated 6-9-2004 as amended Bhutan
3) Rebate of duty on excisable goods used in goods exported to any country except
and Bhutan-Notification No.21/2004-CE (NT) dated 6-9-2004 as amended. Nepal
Refund under Cenvat Credit Rules 2004
1) Refund of Cenvat Credit under Rule 5 of Cenvat Credit Rules, 2004 read with Notification 5/2006-CE (NT) dt. 14-03-2006.
2) Refund of Cenvat Credit to units in specified areas under Rule 5A of Cenvat Credit Rules, 2004
3) Manufacturers clearing Final Products under Notification 20/2007CE Dt.25-04-2007 and who are unable to utilize the CENVAT Credit on inputs are eligible for this refund subject to conditions. Please see the said rule and notification for details.
Filing of Refund claims:
® Refund claim can be filed by an assessee or even by any person other than the assessee, but the condition is that the claimant should have borne the duty incidence and not passed on to any others.
® The claim should be filed with the jurisdictional Deputy /Assistant Commissioner of Central Excise with a copy to the Range Officer
Documentary evidence to be furnished for claiming refund:
All the supporting documents including documents in proof of payment of duty should be submitted along with the claim. The supporting documents may vary depending upon the ground of the refund claim. Further, as per Sub Section (1) of Section 11B read with Section 12-A, all such documents as mentioned under Section 12-A should accompany refund claims for verification by the proper officer.
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