Subject :    Interest on delayed refunds (proposed Section 11BB) - Regarding

        Your attention is invited to the Finance Act, 1995 wherein a new section 11BB under Central Excise & Salt Act, 1944 wherein a new section on delayed refunds. Which the enactment of the Finance Act, the the Department has become liable to pay interest at the prescribed rate in case of various types of refund which are not processed within three months from the date of the receipt of refund applications under section 11BB of CE & SA, 1944, till the date of refund of such duty. In this regard you may also refer to Notification No. 22/ 95-CE (NT) dated 29.55.95. which fixes such interest @ 15% payable in respect of such delayed refunds.

2.    Keeping the above in view, the following instructions are being issued regarding refunds claimed under section 11B of CE&SA, 1944:-

a)    Refund application must invariable be filed in the office of the Asstt. Collector and Not with the Range Superintendent.

b)    Immediately on receipt of an application, the same must be scrutinised by an officer, not below the rank of an Inspector for its completeness.

c)    Preliminary scrutiny should be carried out with regard to completeness of the information in the proforma already prescribed, verification of supporting documents to substantiate the refund claim and to evidence payment of duty.

d)    An acknowledgment should be issued immediately after the above mentioned verification which will be an evidence of the receipt of refund application in terms of section  11BB. The period of 3 months in terms of section 11BB shall be counted from the date following the  the date of receipt of refund application up to the date of despatch of cheque for refund.

e)    The Collectors should direct the Divisional Assistant Collectors to designate an officer by name who will carry out the initial verification and issue the acknowledgment thereof.

f)    Such acknowledgment must be issued within 48 hours of the receipt of the refund application, excluding holidays.

g)    Where the refund application is found to be incomplete a letter shall be issued stating the deficiencies therein, the additional information/ document required within 48 hours of the receipt. In such cases the letter shall be issued only with the approval of a Superintendent and the period of 3 months, for purpose of section 11 BB, shall count from the date of receipt of all the requisite information or documents.

h)    The Collectorate may use a cyclostyled proforma for the purpose of intimating the deficiencies or for acknowledgment of the receipt of the refund application.

i)    Check-lists of various documents which should be filed with the refund claims of different types are annexed herewith to be used as guidelines. However, the list may not be treated as exhaustive and any other documents, it required, may be included therein and called for from the assessee.

Sd/-
(Mallika Arya)
Under secretary to the Govt. of the India

1.    Rebate of duty of excisable goods exported out of India or on excisable materials used in the manufacture of goods which are exported out of India :-
 
-    Application in prescribed form Annexure -65.

-    Original copy of AR - 4

-    Duly attested copy of Bill of Lading / Airway Bill

-    Duly attested copy of Shipping Bill/ (export promotion copy).

-    Disclaimer certificate (in case where claimant is other than exporter).

-    Quadruplicate copy of invoice evidencing payment of duty.

2.    unspent advance deposits lying in balance in applicant's account current:
 

-    Latest abstract received from CAO

-    PLA Register

3.    Refund of credit of duty paid on excisable goods used as inputs in accordance with rule 57F:-
 

-    Relevant extract (in original) of RG-23A (Part I and II).

-    Duly attested copy of Bill of Lading.

-    Duly attested copy of Shipping Bill.

-    Original copy of AR-4 where - ever removal for export takes place under cover of AR-4.

4.    Duty of excise paid by the manufacturer, if he had not passed on the incidence of such duty to any other person:-

-    Quadruplicate invoices issued under rule 52A indicating the amount of excise duty.

-    Triplicate copy of the relevant PLA / RG- 23A Pt.II/ copy of challans under which deposits
were made into Bank.

-    Calculation sheet indicating details for arriving at the amount of refund claim.

-    In case of payment of duty under protest, the evidence to the effect that duty was paid under protest in terms of Rule 233 B of Central Excise Rule 1944.

-    Documentary evidence to show that the incidence of duty has not been passed on by the assessee to any other person.

-    Copy of the order in original/ order in appeal / Court's order in pursuance of which the refund claim has been lodged.

5.    Refund on duty paid goods brought into the factory for remaking/ reprocessing (Rule 97. 173L):-

-    Copy of D -3.

-    Quadruplicate copy of invoice under which duty on goods was originally paid.

-    Duplicate copy of invoice under which goods have been received back for remaking/ reprocessing indicating payment of duty/ duty reversed.

-    Abstract of From V Register.

6.    Refund of deposits for units working under the compounded levy scheme:
 

-    TR-6 challans or any other documents to show initial deposit.

-    Relevant copies of the current account register maintained by the assessee.

7.    Refund of the purchased price of the un-used or damaged Central Excise Stamps (Rule 99):-
 

-    Refund application in prescribed form.

-    Un-used/ damaged Central Excise Stamps/ labels on which the refund in claimed.