Refund - Overview
On import or export of goods, at times, it is found that duty has been paid in
excess of what was actually leviable on the goods. Such excess payment may be
due to lack of information on the part of importer/exporter or non-submission of
documents required for claim of lower value or rate of duty. Sometimes, such
excess payment of duty may be due to shortage/short landing, pilferage of goods
or even incorrect assessment of duty by Customs. In such cases, refund of excess
amount of duty paid can be claimed by the importer or exporter.
The application for refund is required to be filed with documentary or other evidence including documents relating to assessment, sales invoice and other like documents to support the claim that the duty and interest was paid in excess, incidence of duty or interest has not been passed on by him to any other person, and the refund has not been obtained already.
Where on scrutiny, the application is found to be complete in all respects, the Customs issues an acknowledgement in the prescribed Form as per the Customs Refund Application(Form) Regulations, 1995. However, in case the application is found to be incomplete, the Customs has to return the application to the applicant, pointing out the deficiency. The applicant has to re-submit the application after making good the deficiency, for scrutiny by Customs again for admissibility of the refund claim.