Saturday, November 14, 2015

Schema for Speedy disbursal of refund claims of exporters of services by CBEC

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.


The Deputy/Assistant Commissioner of Central Excise/Service Tax


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/


The Deputy/Assistant Commissioner of Central Excise/Service Tax
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