Customs / revenue refunds
Vishal K Singh VY
(Querist) 08 May 2012
This query is : Resolved
Greetings of the day, First of all I shall congratulate you all for doing such a noble work of helping the community which is highly commendable.
I am an avid reader of the posts from a long time, these posts are highly informative in nature.
Today I'm here today to ask a question related to the problem faced by a friend of mine who did not have access to the internet or rather I can say; not well versed with computers.
My friend is in the export - import business and been exporting chrome since 2007. In the year 2009 he has exported goods which were brought through various parts of India through a unit in DTA.
Custom department charged Duty from the DTA unit which is eventually passed on to his SEZ Unit because the DTA unit added up the amount paid as duty to the price of the products,
He paid the duty but later asked for refund of the duty which was levied wrongly due to the mis-interpretation of the term 'Export', customs department never paid any heed to his request and thus aggrieved he filed a case in the High Court against custom department in the same year (2009).
After the due course of time and proceedings the Honourable Court ruled the judgement in his favour in July, 2010 in a very clear manner and in the simplest possible language. The High Court ruling said (excerpts):
“The writ application thus succeeds. The respondent authorities are restrained from imposing custom duty on procurement of raw materials to the unit of the petitioners from any other part of India. The petitioner shall be entitled to refund of custom duty, if any, paid for procurement of raw materials to its unit.”
And it is also advised by the honourable court that:-
“Urgent certified Photostat copy of this order, if applied for, be supplied to the parties subjected to compliance of all requisite formalities."
Since then my friend is running from pillar to post to get refund back but he has not succeeded through his efforts until now.
The refund amount was more than 2.5 Cr.
He does now wish to expedite the process and requested to take a opinion from a qualified industry expert, because somehow he believes that his current lawyer is highly inefficient.
He want to know; now; that:
1) What is the correct procedure to demand refund ?
2) Is there any sort of interest which Custom Department is bound to pay after such long time, if yes, upto what extent ?
3) Can he claim a Compensation from the department for such delay and because this delay and financial loss caused his company to cease operations within few months since the day this duty has been levied ?
4) Is it appropriate to go thru the Public Greivance Redressal System to seek speedy recovery from the department because is has a turn-around-time system and initial cost is zero; which makes this option much suited for him because he is facing accuse shortage of liquidity as a consequence for ceasing operations ?
5) All other valuable insights which he has to keep in mind
Until now he has filed request with all addendums & annexures to the department but no money has been retrieved so far.
If you people can help or at-least guide him, we would be great full to you.
Thanks and Regards,
VKS
V R SHROFF
(Expert) 08 May 2012
FIRST ADVISE TO HAVE PC AND INTERNET, AS ESSENTIAL FOR IMPORT EXPORT BUSINESS.
Only Local Advocate, as refund amt is in crores, and your friend can certainly bear Legal cost.
Vishal K Singh VY
(Querist) 08 May 2012
He definitely does has a PC and Internet, I mentioned there that he is not very well versed with that.
Also Mr. Shroff I am very thankful to you for such a prompt reply but I would appreciate if you can throw some light on the topic discussed.
ajay sethi
(Expert) 08 May 2012
we are not replying to commercial queries . your frind is in export buisness he can afford legal fees . if he is not satisfied with his lawyer he can engage services of another lawyer .
Shonee Kapoor
(Expert) 09 May 2012
Experts have decided not to reply to commercial queries.
Regards,
Shonee Kapoor
harassed.by.498a@gmail.com
R.K Nanda
(Expert) 09 May 2012
No more to add.
