SALES TAX GENERAL ORDER NO.04/2000

SUBJECT:- SANCTION OF REFUND CLAIMS OF IMPORT-RELATED SALES TAX BY THE COLLECTORATES OF CUSTOMS.

A question has been raised whether the Collectorate of Customs can allow refunds of sales tax paid at the import stage due to inadvertance, error or misconception. The issue was referred to the Law and Justice Division for clarification. On the basis of advice received from Law and Justice Division, it is clarified that refund of import-related sales tax paid in excess due to inadvertence, error or mis-conception arising out of classification dispute, SRO application dispute or valuation dispute can be decided and allowed by the customs importing station. However, before processing import-related refund claims, the concerned Collectorate of Customs must seek confirmation from the concerned Collector of Sales Tax that no adjustment of input/refund of the said amount has been claimed by the applicant or paid by the Sales Tax department, to avoid double payment of refund.

2. While applying for refund, the applicant must endorse a copy of refund application to the officer incharge of the Refund Division of the Sales Tax Collectorate. The refund sanctioning authority of the Customs Collectorate shall mention the number and date etc. of Sales Tax Collectorate’s confirmation of input/refund having not been allowed earlier in the sanction order. A copy of the sanction order shall invariably be endorsed to the officer incharge Refund Division of the concerned Sales Tax Collectorate.

( ABDUL RAZZAQ )

Secretary (STP)