CVD Meter Begins from Date of Payment of
CVD and not Date of Finalization of Provisional Assessment
[CBEC Circular No. 23 dated 29th July
2010]
Subject: Refund of 4% Additional
Duty of Customs (4% CVD) in pursuance of Notification
No.102/2007-Customs dated 14.9.2007 – Disposal of claims in respect of cases
where assessments are provisional.
Your kind attention is invited to the Notification No.102/2007-Customs
dated 14.9.2007, Notification No.93/2008-Customs dated 1.8.2008 and Board’s
Circulars No. 6/2008-Customs dated 28.4.2008, No.16/2008-Customs dated
13.10.2008, No.6/2009-Customs dated 9.2.2009 and No.18/2010-Customs dated
8.7.2010 containing instructions on the procedure to be followed by the Customs
field formations in case of 4% CVD refund claims.
2. References have been received
by the Board pointing out that divergent practices are being followed as
regards sanction of 4% CVD refund claims in the cases where assessments are
provisional. It has been reported that
in some Custom Houses, ‘date of payment’ of duty is being considered as date
for determining the prescribed period of one year in terms of the Notification
No.93/2008-Customs dated 1.8.2008, whereas in other Customs Houses, the
relevant date is the date of finalization of provisional assessment and
accordingly, the importers in those Customs Houses are filing refund claim
within one year of finalization of assessment. It was requested that a suitable
clarification be issued by the Board in order to ensure uniformity in
procedure.
3. The matter has been examined
in the Board. As per the Board Circular
No.6/2008-Customs dated 28.4.2008, the limitation of time under Section 27 of
the Customs Act, 1962 is not applicable in cases relating to refund claims of
4% CVD. The refund of 4% CVD is
admissible in terms of Notification No.102/2007–Customs dated 14.9.2007 read with
Notification No.93/2008-Customs dated 1.8.2008 issued under Section 25(1) of
the Customs Act, 1962 subject to fulfillment of certain conditions as envisaged
in the said notifications. The time limit prescribed for the purpose of 4% CVD
refund claim is one year from the date of payment of duty as per the said
Notifications. Hence, in cases where the
assessment is provisional, for the purpose of sanction of refund of 4% CVD, the
date of payment of duty would be, the date of payment of CVD at the time of
import of goods and not the date of finalization of provisional assessment. The
Importer, therefore, would be eligible to get the refund, if the claim is filed
within one year of the date of actual payment of 4% CVD i.e. the date of payment
of duty at the time of clearance of imported goods.
4. Board, has, accordingly
decided that all pending 4% CVD refund claims under Notification
No.102/2007-Customs dated 14.9.2007 and Notification No. 93/2008-Customs dated
1.8.2008 should be disposed of despite the fact that the assessment continues
to be provisional without awaiting for finalization of assessments.
5. A suitable Public Notice and
Standing Order may be issued for the guidance of the trade and staff.
6. Difficulties faced, if any, in
implementation of this Circular may be brought to the notice of the Board at an
early date.
F.No.401/104/2007-Cus.III