SERVICE
TAX CIRCULAR
-COPY OF-
SERVICE TAX CIRCULAR
NO
187/6/2015-Service Tax
Dated 10th November, 2015
Speedy disbursal of
pending refund claims of exporters
of services under rule 5
of the CENVAT Credit Rules, 2004.
The Board has
been issuing instructions from time to time relating to the sanction and
disbursal of refund claims under various notifications. A simplified procedure
for sanction of refund for select categories of exporters was outlined vide
Circular No, 828/5/2006-CX dated 20-4-2006 issued from F. No. 268/4/2005-CX-8.
This year having been declared as the Year of Taxpayer Services, the Board has
accorded primacy to speedy sanction of refunds in case of export of services.
Keeping in mind the various legal changes in service tax since 2006 and the
various representations received in this regard, I am directed to inform you
that the following scheme has been drawn up to fast track sanction of refund of
accumulated CENVAT credit to exporters of services. This scheme is not a
substitute for the various notifications but is meant to complement them and is
aimed at enabling ease of doing business.
2.0 Applicability of the scheme
2.1 This scheme
is applicable to service tax registrants who are exporters of services, with
respect to refund claims under rule 5 of the CENVAT Credit Rules, 2004, which
have been filed
on or before 31-3-2015, and which have not been disposed of as
on date of the issue of this circular. Such registrants will be referred to as
'claimants' in the subsequent paragraphs.
2.2 The phrase
"disposed of in this context refers to either sanction of refund or
denial, either in whole or in part, by way of an adjudication order. Refunds
which had been finalized earlier by issuance of an adjudication order but have
been remanded back to the original sanctioning authority will not be covered
under this scheme since re-examination of such claims will have to be done
strictly in terms of the remand order of the Commissioner (Appeals)/ CESTAT/High Court
3.0 Additional documents to be
submitted (i.e. in addition to those required to be filed along with the claim)
3.1 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, in the
format given in Annexure-1.
3.2 An
undertaking from the claimant in the format given in Annexure-2.
4.0 Operation
of the scheme
4.1 On receipt
of the documents referred to in paragraph 3.1 and 3.2 above in respect of
pending claims, the jurisdictional Deputy/Assistant Commissioner will give a
dated acknowledgement to the claimant. He
will then make a provisional payment of 80% (eighty per cent) of the amount
claimed as refund, within five working days of the receipt of the documents.
4.2 The letter
intimating the provisional payment should be in the format given in Annexure-3. It
is clarified that this payment of 80% of the refund amount shall be purely
provisional, based on the documents referred to in paragraphs 3.1 and 3.2 above
and without prejudice to the department's right to check the correctness of the
claim in terms of the relevant notification and recover any amount which has
been provisionally paid. 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.
4.3 After
making the provisional payment, the jurisdictional Deputy/Assistant
Commissioner shall undertake checking the correctness of the refund claim in
terms of the relevant notification.
4.4 During the
course of verification, it may appear that a part of the amount claimed as
refund is inadmissible. In such cases, a show cause notice (SCN) has to be
issued asking the claimant to show cause why the inadmissible amount should not
be denied and wherever relevant, why any amount which has been provisionally
paid should not be recovered. However, 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. This order will be reviewed by the jurisdictional Commissioner.
4.5 If during
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. However, prior to the issue 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.
5.0 Monitoring
and reporting
5.1 An MIS
report in the format specified in Annexure-4
may be sent by the tenth of every month by email to commr.st-cbec@nic.in.
5.2 Principal
Commissioners/Commissioners should ensure that the provisional payment of
refunds is done strictly in terms of the time lines specified and that there
are no complaints regarding delays. They should also ensure that the staff
dealing with refunds are adequately familiarised about this scheme so that it
operates smoothly.
6.0 Publicity
6.1 Principal
Chief Commissioners/Chief Commissioners should ensure that the contents of this
circular are brought to the notice of the claimants as well as the departmental
officers.
F. No. 137/62/2015-Service
Tax
Sd/-
(Himani
Bhayana)
Under Secretary
(Service Tax)
ISSUED BY:
MINISTRY OF
FINANCE
DEPARTMENT OF
REVENUE
CENTRAL BOARD OF
EXCISE AND CUSTOMS
SERVICE TAX WING
Annexure-1
To,
The Deputy/Assistant
Commissioner of Central Excise/Service Tax
Date:
Madam/Sir
1.0 This is to certify that for
M/s __________, STC No._________
1.1 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.
1.2 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 thereunder.
1.3 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.
1.4 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/
authorized
signatory of the statutory auditor/chartered accountant
Annexure-2
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
Annexure-3
To,
M/s
STC No.
Date:
Subject: Provisional payment of amount
claimed as refund
Please refer to your refund claim
filed for the quarter______________ for an amount of Rs_________ filed on _________
2. On the basis of the certificate
dated ____________ issued by the statutory auditor M/s.........../ Chartered
Accountant M/s _______________ dated _________ received in this office on
____________, provisional payment of the amount of Rs___________ is hereby made
vide cheque No._____________ dated ________ on ________ Bank.___________,
3. This provisional payment of 80% of
the refund amount is purely provisional and without prejudice to the right of
the office of the Commissioner of Central Excise/Service Tax,_________ to check
the correctness of the claim in terms of the relevant notification and recover
the difference, if any, between-
3.1 the amount provisionally paid and
the amount held to be admissible; and
3.2 any amount which appears to have
been erroneously refunded.
Signature
of Deputy/Assistant Commissioner of Central Excise/Service Tax
Annexure-4
MIS Report- Speedy disbursal of
pending refund claims of exporters of services under rule 5 of the CENVAT
Credit Rules. 2004
Zone:
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Month:
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Refund claims pending as on
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required in
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made (
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Amount
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