TRADE NOTICE NO. 08/CE/SH/2016
Dated Shillong, the 10th May, 2016
Attention is invited to the procedure followed by the field formations for payment of refund/ rebate. Presently, most of the field formations follow the manual handing over/ despatch of cheques for payment of refund/ rebate. Consequent to the sanction of refund/ rebate claims by the competent authority, cheques are being issued and the same are sent by either registered post or handed over to authorized persons. The present procedure entails paper work, manpower deployment by the claimants and delay in payment of refunds.
2. In order to speed up the transfer of the fund directly to the beneficiary’s bank account after sanction of the refund/rebate claim and thereby promote ease of doing business, the following procedure for e-payment of refund/ rebate is hereby prescribed for implementation by all field formations:
I. E-PAYMENT THROUGH AUTHORIZED BANKS
a) The payment under the system of electronic payment of refund/ rebate amounts through RTGS/ NEFT facility shall be made by the field formations through authorized banks.
b) As most of the field formations are maintaining current account with nearest Govt. business enabled branch of the State Bank of India, the e-payment procedure may be implemented through those branches.
c) The banks may charge the refund claimant fee for remitting refund amount through RTGS/ NEFT as per RBI guidelines and the claimant would get only the net amount.
II. PROCEDURE FOR E-PAYMENT
a) For all fresh refund (including Area Based Refund)/Rebate claims filed on or after 01.07.2016 as well as pending refund/rebate claims, where Refund Orders have not been issued before 01.07.2016, the claimants shall provide one-time authorization in duplicate duly certified by the beneficiary bank in a prescribed format (enclosed as Annexure-A). One copy shall be retained by the department and one copy shall be sent to the bank with the first refund sanction order of the applicant.
b) Divisional Deputy/Assistant Commissioner as mentioned as mentioned in col. 2 of table below are authorized DDO’s to issue cheque for disbursal of refund/rebate hitherto in respect of the refund/rebate sanctioned by authorities mentioned in corresponding col. 3 of the said table.
c) Upon receipt of the refund/rebate sanctioned by the refund sanctioning authority as at col. 3, the DDO shall issue a cheque for consolidated refund/rebate amount. They would forward the authorized bank at periodic intervals.
i) A signed statement (copy of sample format enclosed as Annexure-B) of sanctioned orders which inter alia contains details of the beneficiaries and the amount sanctioned.
ii) A cheque in favour of the bank as mentioned above for the consolidated refund/rebate amount.
iii) A soft copy of the above statement to the banks through e-mail.
d) The authority at col. 2 of the table above shall ensure that at least one signed statement of sanctioned orders along with a cheque for the consolidated refund/rebate amount, in the prescribed format (Annexure-B), is forwarded to the authorized bank in a given month. The said statement shall cover the details of all the refund/ rebate orders sanctioned till the date of forwarding of statement to the bank.
e) Upon receipt of the statement signed by the refund sanctioning authority and the cheque for the consolidated refund amount, the bank would credit the refund amounts to the respective accounts of the claimants through NEFT/RTGS after deducting the applicable NEFT/ RTGS charges as per RBI guidelines. Commissioners are expected to ensure that there is no delay in the disbursal of the sanctioned amounts.
III. PROCEDURE FOR RECONCILIATION
a) A UTR (Unique Transaction Reference) is generated for each transfer of funds to the beneficiary’s account by the bank. This UTR is a bank’s acknowledgement evidencing the transfer of the fund to the claimant’s bank account and should be collected from the bank at periodical intervals along with a periodic report in Format Annexure-C.
b) After transfer of the sanctioned refund/rebate amount to the beneficiary’s account, UTR’s report received from the bank should be sent to the PAO concerned at the end of each month enclosing the details of cheques issued with date and amount.
c) After transfer of the amounts to the claimants, the bank shall generate ‘periodic scroll’ containing the details of refund amount sanctioned to various claimants along with other details as necessary and send the same to the PAO concerned giving details of receipt of consolidated cheques and payments made by the bank.
d) The PAO shall reconcile the cheques issued by the field formations in respect of the rebate/refund with the periodic scroll sent to them by the bank and report discrepancy, if any, to the field formation concerned who, in turn, would verify the same and send compliance report to the PAO.
3. Assessees who are availing Self Credit of Refund under Notifications No. 32/99-CE or 33/99-CE, both dated 08.07.1999, as amended, or No. 20/07-CE dated 25.04.2007, as amended, shall continue to avail Self Credit of monthly refund in their Account Current under the respective Notifications.
4. Difficulty, if any, in implementation of the above procedure may please be brought to the notice of this office.
C.No: IV(16)24/TECH/SH/Instruction/2015/2271-2336 Dated: 10-MAY-2016
Copy forwarded for information and necessary action to:—
1. The Chief Commissioner, Central Excise, Customs & Service Tax, Shillong Zone, “CRESCENS’ Building, M.G Road, Shillong 793001.
2. The Commissioner, Central Excise & Service Tax, Dibrugarh.
3. The Commissioner of Customs (Prev), N.E.R., Shillong.
4. The Commissioner, Central Excise & Service Tax, Guwahati.
5. The Commissioner (Appeals), Central Excise & Service Tax, Guwahati.
6. The Commissioner (Audit), Central Excise & Service Tax, Guwahati.
7. The Deputy Commissioner (P & V), Central Excise & Service Tax, Shillong.
8. The Assistant Commissioner, (Audit/S.Tax), Central Excise & Service Tax, Shillong.
9. The Deputy/Assistant Commissioner, Central Excise & Service Tax, All Divisions under Shillong Commissionerate with a request to circulate the same to all Superintendents of Central Excise & Service Tax Ranges under their respective jurisdictions.
10. The Assistant Commissioner, Anti-Evasion, Central Excise & Service Tax, Shillong.
11. All Trade Association/Chamber of Commerce under Shillong Central Excise Commissionerate.
12. All R.A.C. Members under Shillong Central Excise Commissionerate.
13. P.A. to Commissioner, Central Excise & Service Tax, Shillong.
14. The Systems Officer, Computer Cell, Central Excise & Service Tax, Shillong, with a request to upload the Trade Notice immediately on the Commissionerate’s website.
15. Guard File.
(T. C. Roy)
Assistant Commissioner (Tech)