Pre-deposit provisions in Excise, Customs & Service tax laws clarified
16 September, 2014
Board of Excise & Customs (CBEC) has clarified today some of the provisions
relating to mandatory pre-deposit for filing appeals and refund thereof in case
of favorable order, which were brought into force from 6-8-2014 by Finance (No.
2) Act, 2014. Circular No. 984/4/2014-CX,dated 16-9-2014 issued in this regard
specifies simple procedure for making pre-deposit and for claiming refund. It
also allows payments made during the course of investigation or audit to be
considered as pre-deposit under the relevant provisions.
Refund of pre-deposit within 15 days
made at the time of filing appeal is to be refunded along with interest to the
appellant within 15 days of the receipt of a simple letter seeking such refund.
Self-attested photocopies of favorable order and document evidencing payment of
deposit are required along with the letter. This refund will have to be made
even in cases of remand and irrespective of whether order of the appellate
authority is proposed to be challenged by the Department. Further, such refund
with interest will be granted unless the order favorable to assessee has been
stayed. It has also been clarified that such refund would not be subject to the
provisions of Section 11B of Central Excise Act as pre-deposit is not duty.
Amount paid during investigation to be considered
made prior to filing of appeal like those during investigation or audit will
also be considered as pre-deposit under Section 35F of Central Excise Act, 1944
or Section 129E of the Customs Act, 1962. However in case of such payments,
date of filing of appeal shall be taken as the date of deposit.
No recovery during pendency of appeal
This Circular also holds that earlier Circular No. 967/1/2013, dated
1-1-2013, which was a major source of concern for assessees as it called for
recovery of the amounts due to the Government during the pendency of stay
applications or appeals, would not be applicable to appeals filed under the new
provisions. It directs officials not to take coercive measures to recover
balance amount i.e., the amount in excess of 7.5% or 10% deposited as per new
provisions during the pendency of appeal.