Aces-Refunds

AUTOMATION OF CENTRAL EXCISE AND SERVICE TAX  REFUNDS
The refund Module in ACES mainly consists of a FOUR STEP process. They are : 1. Request for Refund. 2. Scrutiny of request for Refund. 3. Refund Order. 4. Audit Report.
1. REQUEST FOR REFUND.

Only Registered assessees and other buyers can file refund.

The registered assessee first logins to 'Assessee Home Page' (http://aces.gov.in/REGASE for Excise or http://aces.gov.in/STASE for Service Tax).

The Navigational path would be:- Assessee Home Page - REF
(Module) - Refund Request - Create.
Details of claimant are automatically populated. However, if the Supdt. is filing the request on behalf of the assessee, the registration Number should be filled in, after which the system populates the other details.

The field 'Nature of Claimant' i.e. 'Manufacturer who paid duty' (or)
'Others' is required to be selected. This is mandatory.

If applicant is the buyer, the claimant should provide registration
Number of Original Manufacturer.

The next field is 'Particulars of the claim' containing Reasons for Refund for which select appropriate one given, then total amount and if necessary, total amount claimed from deposit in Current Account.

The Central Excise Tariff Head (CETH), Duty Head (BED etc),
Commodity description, amount claimed should be filled-in next.

Then the 'Grounds of Refund' (upto 1000 characters) should be filled.

Next, the 'Source Document' details & whether duty was paid 'Under Protest' is to be filled. If duty was paid 'Under Protest' the period of one year for filing claim will not be applicable. The period covered & further details as per the form are to be filled.

If all the above details are fed-in correctly, the 'NEXT" button is
required to be clicked which will take you to the Next Page.

In this page the Section, Act & Rules under which the claim is filed, the CETH, Notification relied upon, if any, alongwith Sl.No. in Notification, Rate of duty - whether advalorem or specific rate are to be filled in. Then the declaratios, mode of submission of documents are to be entered.

If any modification is required the same can be done by clicking
'MODIFY' button. If everything is correct, click 'Sign and Submit'.

The 'Sign and submit' dialog box appears. If 'OK' is given, the Refund Request Number is generated and displayed. This can be used for future reference.

2. SCRUTINY OF REQUEST FOR REFUND

The next step after the Refund Request has been filed is that it is
routed to the workflow of the Superintendent.

The scrutiny of the claim is done manually by the Superintendent. After seeing whether the claim is supported by all requisite documents, the concept of unjust enrichment arises or not, the claim is filed within the time-limit prescribed and after checking 100% the correctness of the claim, the Superintendent creates a 'Scrutiny Report'. The Navigational Path for this will be : - Login as SP - go to REF (Refund) Menu - Scrutiny Report sub-menu and click 'CREATE'.
The portfolio for creating Scrutiny Report emerges. Here, select the claim for which Scrutiny Report is to be generated and then click 'Select' button.

The details of claimant and date of claim are automatically
populated.

The 'Start date' and 'end date' are to be filled in. The 'details of scrutiny' which should not exceed 1000 characters detailing the correctness of the claim, the scrutiny done etc. should be given by the Superintendent.

The 'outstanding liabilities' is automatically populated by the
system.

The Superintendent should then click on the 'check boxes' of the five checks wherever the answer to them are in the affirmative. This is the 'Summary of Scrutiny'.

Then the Superintendent should attach his 'Scrutiny Report' by browsing in Word or Excel document and upload the same. Then the 'SAVE' button is to be clicked.

The Scrutiny Report with all the above details emerges. If modification is required 'MODIFY' button is to be clicked and modification carried out. If all are correct, the 'SIGN AND SUBMIT' button is to be clicked.

The 'Sign and Submit' dialog box appears. If 'OK' is given, the Scrutiny Report is created and a Scrutiny Report number is generated.

The Scrutiny Report has to be approved. The Navigational Path is: Login as AC/DC - REFUND - Scrutiny Report - Approval. In the List of Scrutiny Reports go to Search - Select. The Scrutiny Report comes on the screen. AC/DC can either approve or send it back to Supdt. for modification. After filling 'Notings' AC/DC can 'Save' & then click on the 'Approve' button. The Signing Wizard is displayed and Approved Scrutiny Report is sent to Supdt. This is sent to database for further processing.

3. REFUND ORDER.
Creation of Refund Oder involves the following procedures
which have to be made in the DSR Module.
(a) Case Portfolio : AC/DC always issues a SCN before making a speaking order. Login as SP - go to DSR Module - Case Portfolio - Create. It is very important to note that in the 'Triggering Activity' you should select 'Refund claims'. Give the period, Refund amount claimed, Reasons for refund, Source document details. Then 'Save', 'Sign and submit' - CPF number is geneated.
(b) Create a SCN : (Login as SP) In DSR Module go to Case Portfolio - View. In the Case Portfolio go to DSR - SCN - Create. The claimant's details are automatically populated. Fill in all other fields. Here also, in the 'Triggering Activity' you should select 'Refund Claims'. Choose the Category, give the purpose of the SCN, period etc. and click the 'Next' button. In the next page fill in details of issues, Duty, interest liabilities, Sections/Act violated & invoked and add Comments and attach Notings, if required. Click Save, Sign and Submit. SCN number is generated.
(c) Approve SCN : (Login as AC/DC) - DSR - Approve - SCN. All fields are already populated. In 'Notings' the SCN can be sent back to SP with observations using 'Send Back' button for which SP can send after modification, if necessary. Now, in 'Notings' field the AC/DC can approve and Save. SCN approval is generated.
(d) Reply to SCN : (Can be logged on as SP or as assessee) - DSR - Case Portfolio - View. DSR - SCN - Reply. Reply to SCN screen appears. Give reply date, assessee's remarks and Superintendent's comments. Save, sign and submit. Reply is created for SCN and a number is assigned.
(e) PH : Login as AC/DC - DSR - Case Portfolio - View Options - View Case Portfolio. Then go to DSR - OIO - PH - Create PH Memo. Fix PH date, time, address, adjudicating officer, designation. Then Save, Sign & Submit. PH memo is created. Now, in DSR go to PH - Create. Fill in the name and designation of the representative, date of PH, details of documents produced etc. Then Save, Sign & submit. PH Details created and number is assigned.
REFUND ORDER.
AC/DC Login - REF - Refund Order - Create. Most of the columns are automatically populated in the Refund Order format. Fill in Refund Order date, whether it is partial/rejection/full sanction, sanctioned amount, any liabilities are adjusted (it is AC/DC's choice to adjust or not), if adjusted the details of such liabilities adjusted, interest liabilities and misc. liabilities and summary. Then cheque details are entered, if credited to Consumer Welfare Fund those details are also given. The R.O. is given in Order Details field. Then upload the Refund Order - Browse. Then Save, Sign and submit. Refund Order Number is generated.

4. AUDIT REPORT.

If refund claimed is more than Rs.5 lakhs it is considered for pre- audit and only after Audit Report (AR) by ACAudit is approved cheque can be given.

Whereas, for claims less than Rs.5 lakhs it is sent for post audit and
without approval of AR cheque can be given.

There is also random 25% post audit of claims below Rs.50,000/-.

If discrepancies are found, Review under Section 35 E of CEA, 1944 is given for which Dvl. AC/DC will file appeal to Commissioner (Appeals) and also action will be taken to issue demand for recovery of such erroneous refund under Section 11 A of CEA, 1944.

The SP in Audit Cell prepares the Audit Report and is approved by AC Audit. (Not JC as in ACES Manual). The Navigational Path will be: SP Audit Login - REF - Audit details - Audit. The Capture Audit Details screen appears and Notings are prepared, saved, signed and submitted. Audit Details Capture number is generated.

AC Audit Login - REF - Audit Details - For Review. In the Audit Details screen, AC Audit gives his 'Notings', saves, signs & submits. (In case of discrepancies AR can be sent back to SP Audit by clicking 'SEND BACK' button). Then the Refund Order is created and assigned a number by the system.

The Refund Order is routed to the Inbox of AO if AC selects the cheque issuing authority as AO. From the Home Page of the AO go to REF - Refund Order - Create Cheque. The RO number, date, interest payable to Consumer Welfare Fund/Claimant, if any, are to be filled in.

Credit entries are created when the Refund Order is sanctioned in Refund account for CWF amount, Claimant amount, CWF interest amount, Claimant interest amount and adjusted liability amount.

If AC/DC decides to square off existing liabilities, respective credit
entries will be made to square off the liabilities.

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