OFFICE OF THE COMMISSIONER OF CUSTOMS (IMPORT)
JAWAHARLAL NEHRU CUSTOM HOUSE, NHAVA SHEVA.

F.No. S/12-Misc-35/2017-18 CRC (SAD-I) NS-III

Date: 04/12/2017

PUBLIC NOTICE NO. 151/2017

Subject: Clarification regarding payment of SAD refund when the import has taken place prior to 1st July, 2017 (i.e. SAD on import has been paid prior to 1st July) and the sales of the imported goods have effected on or after 1st July, 2017 i.e. during GST regime- reg.

Attention of all Exporters, Importers, Customs Brokers, Members of Trade is invited to Notification No. 42/2017-Cus dated 30.06.2017, Notification No. 102/2007-Cus dated 14.09.2007 & Notification No. 93/2008 dated 01.08.2008 regarding refund of 4% Additional duty of Customs (generally referred to as “SAD”). Kind attention is also drawn to JNCH Public Notice No. 43/2008 dated 06.06.2008 and Facility Notice No. 53/2010, dated 12.05.2010.

2. Trade have represented to issue clarification regarding payment of SAD refund when the import has taken place prior to 1st July, 2017 (i.e. SAD on import has been paid prior to 1st July, 2017) and the sales of the imported goods have effected on or after 1st July,

3. This issue has been examined. To give effect for refund of 4 % SAD in GST regime, enabling amendment were made in Notification No. 42/2017-Cus dated 30.06.2017. The said amendment is applicable to the goods which were imported on payment of SAD and were being sold after payment of appropriate GST instead of VAT/CST in GST regime. In view of the Notification No. 42/2017-Cus dated 30.06.2017 importers are entitled for SAD refund on merit subject to fulfillment of other conditions as envisaged by extant provisions of law.

4. Refund claims submitted by importers are also being processed in terms of the said Notification No. 42/2017 – Cus dated 30.06.2017. However, in order to clarify the doubts and to streamline the procedure, it is being proposed that refund claims filed to avail refund of 4% ACD (paid prior to 1st July 2017 and sales made thereafter), importers are required to submit following documents/ declaration:

(i) “Annexure – A” (Calculation work sheet)

(ii) “Revised Annexure – B” (Self declaration by the importer)

(iii) “Revised Annexure – C” (Summery of sale invoices)

(iv) “Revised Annexure – S” (Certificate by C.A.)

(v) The importers are also required to submit evidence/proof of payment of IGST or CGST + SGST/UTGST as the case may be.

5. The procedure as prescribed under Public Notice No. 43/2008 dated 06.06.2008 and Facility Notice No. 53/2010 dated 12.05.2010 should continue to be followed for refund claims, where goods are sold before 01.07.2017.

6. Difficulty, if any may also be brought to the notice of Assistant/Deputy Commissioner in charge of SAD Refund through email / phones (details available on JNCH Website).

Sd/-

(SUBHASH AGRAWAL)

COMMISSIONER OF CUSTOMS, NS-III

Enclosure: Revised Annexure “A”, “B” & “S”

Copy to:

1. Chief Commissioner of Customs, JNCH, Nhava Sheva

2. Commissioner of Customs, Nhava Sheva I/II/IV/V/General.

3. All ADC/JC/DC/AC, JNCH, Nhava Sheva

4. BCBA/FIEO for circulation among their members.

5. AC/EDI for uploading on JNCH Website.

ANNEXURE- B

SELF DECLARATION FOR REFUND CLAIM FILED ON ————-

FOR THE MONTH OF ——————-

Refund on the Bill of Entry No. —————- Dated ———— permitted to be filed within the maximum time period of one year refundable under Notification No. 102/2007 dated 14/09/2007 as amended by Notification 42/2017 Cus- dated 30.06.2017.

Self-declaration along with the refund claim to the effect that the incidence of 4% CVD has not passed on to any other person in respect of Bill of Entry No. ————— Dated ———– claiming Refund of Additional Duty (Imports)

This is to declare and certify that the exemption from Additional duty and consequent refund, as contained in the Notification No. 102/2007 dated 14/09/2007, as amended by Notification No 42/2017-Cus dated 30.06.2017 is being claimed and is required to be given effect because the following conditions are stipulated therein are fulfilled in the respect of the Bill of Entry No.——————— Dated  ——————- and Challan No. ———- Dated —————.

a) We are registered with VAT /CST/GST authorities of Department of Trade & Taxes, Govt. of  ———— under TIN Registration No. ———– and GST Registration No. —————.

b) We, the importer of the said goods have paid all duties, including the said additional duty of Customs leviable thereon, as applicable, at the time of importation of the goods under the said Bill of Entry No. ——————– dated ——————-.

c) While issuing the invoice for sale of the said goods, we, the importer, have specifically indicated in the invoice that in respect of the goods covered therein, no credit of the additional duty of customs levied under Sub-section (5) of Section 3 of the Customs Tariff Act, 1975 shall be admissible to the buyer and a stamp on the invoice (to state that no CENVAT Credit is admissible) for the purpose of para 2(b) of the said notification has been affixed; declaration in the invoice that in respect of the goods covered therein, “No credit of the Additional Duty, integrated Tax and compensation Cess leviable thereon respectively under sub-section (5), (7) and (9) of the section 3 of the Customs Tariff Act 1975, has been availed/ shall be admissible to the buyer”

d) The details of the sale invoices are given separately.

e) We, the importer have filed the claim for refund of the said additional duty of Customs paid on the importer goods with the jurisdictional Customs Officer, the Dy. Commissioner of Customs, Jawahar Customs House, Sheva, Tal Uran, Dist. Raigad, Navi Mumbai- 400707, the port through which the clearance of goods through Customs was obtained i.e. Nhava Sheva.

f) We, the importer have paid on sale/ supply of the said goods, appropriate Sales Tax or Value Added Tax, IGST/CGST/SGST/UTGST as the case may be and details are given in the attached sheet along with the original of the Challans depositing the Tax and Invoices raised in this regards.

g) We, the importer have provided copies of the following documents along with the refund claim.

i. Original of the Bills of Entry and Challan detailed in attached sheet as the documents evidencing payment of the said additional duty.

ii. Original of the Challans evidencing payment of appropriate Sales Tax/ Value Added Tax, IGST/CGST/SGST/UTGST etc, as the case may be, by us the importer, on sale/ supply of such imported goods.

The Refund claim in respect of the Bill of Entry No.————- Dated —————– as above, is filed on the month of ————–, with the jurisdictional Customs Officer for sanction of the refund claim satisfying that the conditions referred to in Para 2 of the said Notification No. 102/2007 dated 14/09/2007 as amended by Notification No. 42/2017- Cus dated 30.06.2017 are fulfilled.

Place :

Date :

For M/s. ————————-

Signature of the Applicant. —————–

ANNEXURE- C

SUMMARY OF SALE INVOICES

Refund on the Bill of Entry No. ——– dated ————- permitted to be filed within the maximum time period of one year refundable under Notification No. 102/2007 dated 14/09/2007 and Notification No. 42/2017- Cus dated 30.06.2017

Certificate correlating the payment of ST/VAT/CGST/SGST/IGST/UTGST on the imported goods (in respect of which refund is claimed) with the invoices of sale/supply.

Sr. No. Sale Bill/ Invoice Nos. Date Name of Party Quantity In Bags Total Sale Value VAT CST CGST/

SGST/

/IGST

CGST/SGST/IGST/UTGST payment Dated _________ in the

Bank :

Being Registered under No. :

Total

It is further certified that

1. The above information is from the sale/supply invoices and carbon copy / Office copy in original of the said invoices will be furnished, if so required.

2. Against these sales/ supply, no refund of Additional duty of Customs duty has been claimed and no claim in future will be made in respect of these sales/supply.

3. Incidence of excess Customs duty deposited at the time of customs clearance and now covered by the refund claim has not been passed on to the customers and this amount has not been included in the sale/supply value.

4. Amount of Customs duty received as refund of duty deposited at the time of Customs clearance will be treated appropriately for tax purpose.

Place :

Date :

For M/s. ——————

Signature of the Applicant. :

ANNEXURE – S

Consolidated Certificate from the statutory auditor/Chartered Accountant towards unjust enrichment, payment of appropriate ST/VAT/S GST/CGST/IGST/UTGST, correlating payment of ST/VAT/SGST/CGST/IGST/UTGST with the sale/supply invoices and sale/supply through consignment agent/stockist for the purpose of refund of the Special Additional Duty in pursuance to Notification No. 102/2007-Customs dated 14/09/2007 as amended by Notification No. 42/2017-Cus dated 30.06.2017.

With regard to the imports under Bill of Entry No. ——- dated ——– and TR-6 Challan No. —— dated ——-, wherein the Special Additional Duty has been paid and the refund under Notification No. 102/2007 dated 14/09/2007, as amended by Notification No. 42/2017-Cus dated 30.06.2017 is sought by M/s. ———————–.

2. If certified that we are the statutory auditor/ Chartered Accountants, who certifies financial records under the Companies Act, 1956/ any ST/VAT/GST Act of the Central/State Government the Income Tax Act, 1961 or any other statue, of M/s. —————-.

3. For purpose of fulfillment of the condition in Para 2 (d) of the Notification No. 102/2007 dated 14-09-2007 as amended by Notification No. 42/2017-Cus dated 30.06.2017 and for considering sanction of refund of 4% SAD, we hereby certify that we have verified the original invoices of sale/supply, along with supporting documents towards proof of payment of appropriate ST/VAT/GST from the original VAT/ ST/SGST/CGST/IGST/UTGST Challans and / or evidence for adjustment of input tax credit, as effective discharge of ST/VAT/SGST/CGST/IGST/UTGST payment on imported goods.

4. The VAT/ ST/SGST/CGST/IGST/UTGST has been paid as below:-

S.No. Amount of VAT/SGST/ CGST/IGST /UTGST payable Amount of VAT/SGST/CGST/IGST/ UTGST paid online Amount of VAT paid by adjustment of input tax
credits
Details of S. No. and Date of the entries verified from the records of the VAT/SGST/CGST/IGST/UTGST Tax payer
Date S. No.

5. The refund being claimed herein is being shown in the Books of Account / Balance Sheet as Amount due as refund of Additional duty of Customs and same amount has not been passed on to the buyers of the sale/ supply of goods. After examination / audit the records, it is verified from records that the details as given in the enclosed Summary of Sale/supply invoices are true details thereof. As required for examination of the principle of unjust enrichment in the case before sanction of refund under Notifn. No. 102/2007 dated 14/09/2007, this is certified that the burden of 4% CVD / SAD has not been passed on by the importer to the buyer and that they fulfill the requirement of unjust enrichment.

6. It is further certified that amount of GST payment is made by cash &through adjustment of Input Tax Credit. The amount of SAD paid has not been taken as Input Tax Credit and it is certified that no Input Tax Credit on the SAD paid will be taken.

7. In case of sale/supply through consignment agent/stockist we certify that-

(i) consignment agent/stockist M/s ——————- has been authorized to sell/ supply the imported goods in terms of the agreement entered into between the importer M/s ————– and consignment agent/stockist M/s ————————- ;

(ii) that each of the sale/ supply invoices issued by the consignment agent/ stockist indicates that the sale is made by him on behalf of the importer in the capacity of consignment agent/ stockist.

(iii) that appropriate ST/VAT/SGST/CGST/IGST/UTGST has been paid by consignment agent/ stockist M/s —————— on behalf of importer M/s ————— and that the importer, M/s  ————— in turn, has paid or reimbursed the ST/VAT/SGST/CGST/IGST/UTGST to his consignment agent/ stockist M/s —————– along with the correlation of ST/VAT/SGST/CGST/IGST/UTGST payment with 4% CVD paid on imported goods.

Place :

Date :

CHARTERED ACCOUNTANT

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