The CBEC has declared a Schema for speedy
sanction of refunds in case of export of services as this year has been
declared by the board as ‘Year of
Taxpayer Services’ CBEC has drawn up a schema which is not a substitute for
various notification issued earlier but to complement them and with the aim at
enabling the ease of business to fast track sanction of refund of accumulated
CENVAT credit to exporters of services. This scheme will be applicable to all
refund claims which are pending as on 31-3-2015. The Schema is framed whereby
on submission of a few documents a provisional payment of 80% of the claimed
amount will be made within 5 working days to the claimant.The CBEC has declared
the scheme vide Circular 187/6/2015-Service Tax dated 10-11-2015.
Ø Applicable to service tax registrant exporters of services,
with respect to refund claims under rule 5 of the CENVAT Credit Rules, 2004,
which have been filed on or before 31-3-15
Ø Additional documents
to be submitted in addition to those required to be filed along with the claim
i) A certificate from the
statutory auditor in the case of companies, and from a chartered accountant in
the case of assessees who are not companies.
ii) An undertaking from
the registered exporter or claimant
.
Ø On receipt of the documents in respect of
pending claims an acknowledgement will be issued to the claimant & a provisional payment of
80% (eighty per cent) of the amount claimed as refund will be issued to
claimant within five working days of the receipt of the documents.
Ø This payment of 80% of the refund amount shall
be purely provisional, based on the documents filed without prejudice to the
department’s right to check the correctness of the claim. It is also clarified
that the decision to grant provisional payment is an administrative order and
not a quasi-judicial order and should not be subjected to review.
Ø After making the provisional payment, the
jurisdictional ooficer shall undertake checking the correctness of the refund
claim.
Ø During the course of verification, if it
appears that a part of the amount claimed as refund is inadmissible a show
cause notice (SCN) will be issued to the claimant and prior to the issuance of
such a SCN, the claimant may be intimated about the inadmissible amount so that
he has an opportunity to avail of the provisions of section 73(3) of the
Finance Act, 1994. A speaking, appealable order will have to be passed with
respect to the SCN and order will be reviewed by the jurisdictional
Commissioner.
Ø On review of the refund order, any further
amount is found to be inadmissible, then, apart from filing an appeal for
setting aside or modifying the relevant portion of the order, a SCN will also
have to be issued for the amount not covered by the original SCN.
Ø An MIS report may be sent by the tenth of
every month to the commissioner who will ensure that the provisional payment of
refunds is done strictly as per time lines without delays.
FORMAT OF CERTIFICATE
BY AUDITOR / CHARTERED ACCOUNTANT ON LETTER HEAD
To
The Deputy/Assistant
Commissioner of Central Excise/Service Tax
Date:
Madam/Sir
This is to certify
that for M/s____________ , STC__________No.
1. The refund claim for Rs for the quarter is
complete in all aspects with all the relevant documents and has been filed
within the prescribed time limit.
2. The amount of Rs.____________ claimed as
refund for the quarter______________ by M/s. ____________ in their application
for refund dated_________ is correct as per their books of accounts and
relevant records and the same is in accordance with the provisions of rule 5 of
the CENVAT Credit Rules, 2004, read with the notification no. ____________
issued there under.
3. M/s___________is eligible to take CENVAT
credit in terms of the CENVAT Credit Rules, 2004, for the amount which is being
claimed as refund.
4. The services which are claimed to be
exported, qualify to be treated as exports in terms of the rules in force at
the time of the said export.
Signature of the
statutory auditor/chartered accountant/
LETTER BY THE CLAIMANT
To
The Deputy/Assistant
Commissioner of Central Excise/Service Tax
Date:
M/s ________________ , STC No.
_______________ hereby undertake that
for any amount provisionally paid to me for the refund claim for
Rs._____________ for the quarter __________, filed on ___________, in case
there is a difference between the amount provisionally paid to me and the
amount found to be admissible, I shall pay the said differential amount upon
intimation about its inadmissibility, along with applicable interest thereon.
Signature of the claimant
