Sales Tax Instructions

Sales Tax Instructions, 2009
Authorized signature of the Bank
Authorized signature of the Bank with Official Bank Seal.
PART – III
REFUND
(K)
SANCTION OF REFUND CLAIMS OF IMPORT-RELATED SALES TAX BY
THE COLLECTORATES OF CUSTOMS.
25. A question was raised whether a Collectorate of Customs can allow
refunds of sales tax paid at the import stage due to inadvertence, error or misconception.
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 misconception
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. The concerned Collectorate of Sales Tax
on receipt of a reference from Collectorate of Customs, shall issue required confirmation
within thirty days to the effect that no adjustment of input/refund of the amount involved
has been claimed by the registered person in the Sales Tax Collectorate.
26. While applying for refund, the applicant must endorse a copy of the
refund application to the Refund Division of the Sales Tax Collectorate. The refund
sanctioning authority of the Customs Collector shall mention in his sanction order the
number and date, etc. of Sales Tax Collectorate‘s confirmation of input / refund having
not been allowed earlier. A copy of the sanction order shall be endorsed to the Refund
Division of the concerned Sales Tax Collectorate.
(L) INTERPRETATION OF SECTION 66 OF THE SALES TAX ACT, 1990
27. A question was raised that while section 66 of the Sales Tax Act, 1990
disallows refund of tax claimed to have been paid or overpaid due to inadvertence error
or misconception unless the claim is made within one year of the date of payment, what
would be the fate of such refund claims which have accrued in consequence of the
decisions made by appellate fora but where the time limitation of one year specified in
the said section 66 has expired.
28. On consultation by the Board, Law Justice & Human Rights Division has
advised that the period of claiming refund under section 66 of the Sales Tax Act, 1990 is
not applicable in matters pending with judicial or quasi-judicial fora. In any particular
case where the issue has been taken to a competent statutory forum for adjudication, the