Circular No. 1013/1/2016-CX
F. No. 201/05/2014-CX.6
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
CENTRAL BOARD OF EXCISE AND CUSTOMS
New Delhi, dated the 12" Jan., 2016
To
The Principal Chief Commissioners/ Chief Commissioners of Central Excise (All)
The Principal Chief Commissioners/ Chief Commissioners of Central Excise and Service
Tax (All)
The Principal Chief Commissioners/ Chief Commissioners of Service Tax (All)
The Principal Chief Commissioners/ Chief Commissioners of Customs (All)
The Principal Chief Commissioners/ Chief Commissioners of Customs (Preventive) (All)
Sub: General guidelines for implementation of e-payment of refund/ rebate-reg.
Madam/ Sir,
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. In case any formation is maintaining Govt.
account with bank(s) other than the State Bank of India, e-payment may be made
through such bank(s). More than one bank may also be authorized for e-payment.
Cc)
d)
The Commissioner concerned, after obtaining concurrence from the authorized
bank(s) within the jurisdiction to provide for payment of refund/ rebate to assessees
through RTGS/ NEFT facility, shall authorize the refund sanctioning authorities
within their jurisdiction to make e-payment of refund/ rebate through such authorized
banks only.
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. This should be quantified and fixed in consultation with the
authorized bank at the time of rolling out the scheme for payment to the
claimant’s account.
Il. PROCEDURE FOR E-PAYMENT
a)
b)
d)
While filing refund/ rebate claim for the first time, the claimants opting for this
facility 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.
The refund sanctioning authority would forward to 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 amounts 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.
The refund sanctioning authority 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.
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.
Ill. 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
acknowledgment 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 to be prescribed by the Commissioner.
b) After transfer of the sanctioned rebate amount to the beneficiary’s account,
UTR’s report received from the bank should be sent by the refund sanctioning
authority to the PAO concerned at the end of each month enclosing the details
of cheques issued with date and amount. A sample copy of the enclosure to the
letter to PAO is enclosed as Annexure-C. The format of Annexure-C, if
needed, may be locally amended/ modified.
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 may be requested to 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. The above instructions shall be put in place by the field formations by 10.02.2016.
The facility of e-payment of refunds/ rebate is already operational in certain Central
Excise zones such as Mumbai-Il, Hyderabad, Chandigarh and Chennai. The field
formations, for assistance, if any while complying with above directions may consult
the above formations which have already implemented the e-payment facility. Once
the above refund/rebate system is settled with the bank, field formations concerned
shall issue necessary trade notices for information to members of trade.
4. Difficulty, if any, in implementation of the above procedure may please be
brought to the notice of the Board. Hindi version would follow.
(ROHAN)
Under Secretary to the Government of India
Encl.: Annexure-A (1 page)
Annexure-B (1 page)
Annexure-C (2 pages)
Annexure A
AUTHORIZATION
To,
The Deputy/Assistant Commissioner,
Madam/ Sir,
Subject: Authorisation for Refund/Rebate — reg.
I/We authorize payment/credit of sanctioned rebate/refund amount of Central Excise/Service Tax for all my
rebate/refund claims filed at your office directly to my bank account through RTGS/NEFT after deduction of
applicable RTGS/NEFT charges, as per RBI guidelines. In case of any remittance made by mistake or
duplicate, I/we undertake to re-credit the same to the department. I hereby declare following details for the
purpose.
; Name & Address
2. 15 Digit CEX/ ST Registration No./IEC
$. Constitution of the business
(Proprietorship/Partnership/LLP/Private
Ltd/Public Ltd./Other)
4, DETAILS OF APPLICANT
Address
Telephone/ Mobile No.
Email ID
5. BANK ACCOUNT DETAILS OF THE
REGISTERED ASSESSEE/EXPORTER
TO WHICH SANCTIONED REFUND
AMOUNT IS TO BE DEPOSITED
Name of the Bank
Branch
Bank Account No.
IFS Code
Type of Bank Account: Saving A/c Current
Account
I/We fully understand that any information furnished in the application if found incorrect or false will render
my/us liable for any penal/action or other consequences as may be prescribed in law or otherwise warranted.
Place:
SIG PATTE. ccvessicsanivecravsnewvers
Date:
Name
Designation
(Proprietor/Partner/Director/Authorized Signatory)
Enclosed: (1) Photocopy of a cancelled blank cheque.
BANK VERIFICATION
Certified that above details are tallied with bank record and found correct
SIQHA HUE i ssviss sasvessicarsvessunesn
Name
Seal of the Bank
Note
1. In case the authorisation is signed by authorised signatory, the Bank Manager shall verify and confirm that said
authorised signatory is indeed authorised by the firm/company to transact with the Bank.
2. All information detailed above shall be mandatorily filled/provided.
Annexure B
OFFICE OF THE ASST./ DY. COMMISSIONER
C. No. Dated
To
The Branch Manager,
sskcieaarnescensennenaioateneis Bank
Sir,
Sub: Payment of refund claims amount directly to the assessee’s/exporter’s bank
account through RTGS/NEFT — Regarding.
Please find enclosed herewith a Cheque No. .....................000065 Ce eee for an amount of
| a, eee, een and a list of refund/rebate claims (in duplicate) sanctioned by the undersigned
during the period from to in favour of the beneficiary(s),
whose details are provided as under:-
Sl. Beneficiary | Name of the Beneficiary IFSC Refund Remitter’s Ref. no of the
No. | Name Beneficiary Bank account | Code No. | amount account No. | sanction order
Bank No. sanctioned
(1) (2) (3) (4) (5) (6) (7) (8)
2. Please remit the amount mentioned in col. No. 6 of the table above through RTGS/NEFT by debiting our
account no. mentioned above.
3. You may recover RTGS/NEFT charges as per RBI guidelines, leviable on the said sanctioned amount and
remit the balance amount to the bank account of the beneficiary.
4. Essential details of the beneficiary have also been sent through my official e-mail account
viz. to your email account
5. It is requested to return the duplicate copy of Annexure B duly certified by the bank. In case of non-
remittance, please provide reasons for the same with further advice, if any.
Yours faithfully,
Encl. Cheque No, s.siseacsvus ee for Rs.
Signature with date:
Name
Office Seal Designation
Telephone no.
ANNEXURE-C
DIVISION, COMMISSIONERATE
Cheque details for Month 2016
Sr. | Cheque Cheque Date Amount
Remarks
No. No.
Week Ending __
|G) (2) (3) (4) (5)
1
RTI GSINEF Fy oxxe oes Bank Branch
2
-do- 4
TOTAL
a
Week Ending
pw
RTGS/NEFT, .....-:<: Bank Branch
| 4
-do-
_
-do-
6
-do-
7
-do-
TOTAL
Week Ending
8
RTGS/NEFT, ....:-»- Bank Branch
9
-do-
=
TOTAL
Week Ending
ony
10
RTGS/NEFT, ....---- Bank Branch
11
-do-
12
-do-
13
-do- ae
TOTAL
at
GRANT | TOTAL
=|
ANNEXURE-C
IFSC
|
Transacti
|
Commiss
|
Remitter’s
|
Remitter’s
|
Remitter’s
Beneficiary
Beneficiary
|
Beneficiary
|
Payment
Sender
to
Email
ID
UTR
CODE
on
ion
Account
Name
Address
A/C
No.
Name
Address
Details
Receiver
Amount
|
Amount
Number
information
(1)
(2) (3) (4) (5) (6)
(7)
(8) (9)
(10)
(11) (12) (13)
