Circular No.ES/ 164 / 2016-17 November 03, 2016
To: Members of the Council
Sub: - Interest on delayed refunds of deposits
Dear Member,
This is to inform you that the Office of the Commissioner of Customs (Nhava Sheva) has issued Public Notice No. 144/2016 dated 31.10.2016 clarifying that no interest is payable in respect of refund of deposits like Security deposit, deposits on project import, etc.
In this connection, we are giving here below a relevant portion of Para 6 of CBEC Circular No. 59/95 issued vide F. No. 438/7/95 CUS IV. which states as under:
“The finalisation of refund claims are to be closely monitored and it may be ensured that these are decided without fail within the period provided. No interest liability should normally lie on the Government. It is further desired that all refund claims in future be settled at the level of Assistant commissioner only (and not by Superintendent/ Appraiser). No interest is payable in respect of deposits (for example deposits for project import, etc.). Pre audit system as well as issue of cheques should be ensured at utmost speed.”
Members may kindly note of the above.
Thanking you,
V. ANIL KUMAR
EXECUTIVE DIRECTOR
