Processing of Refund Claim – Flow Chart
SUBMISSION of refund application in prescribed form (Part ‘A’) to Refunds section by the claimant along with relevant documents
SCRUTINY of claim & documents by AO/Supdt. and put up to AC/DC (Refunds)
If all documents are available, ADMISSION of Claim by AC/DC and issue of ACKNOWLEDGEMENT in prescribed form & allot file number
In case of deficiency in documents, claim application along with all documents will be RETURNED to claimant by issuing deficiency memo by AC/DC; Only a copy of refund application (Part ‘A’) will be retained for reference in common file
On RE-SUBMISSION of the application again by claimant with requisite documents, scrutiny by AO/Supt. to verify whether the same is complete in all respects and if so, ADMISSION of Claim by AC/DC and issue ACKNOWLEDGEMENT in prescribed form & allot file number
File assigned to individual officer by AC/DC (Refunds) and DETAILED SCRUTINY by Supdt./AO
If all documents in order, file processed by Supt./AO and PUT UP TO AC for perusal & scrutiny
On detailed scrutiny, STILL, IF THERE ARE DOCUMENTARY DEFICIENCIES, letter will be issued to the claimant pointing out the same. If any clarification/justification required, opportunity for PERSONAL HEARING will also be given to the claimant before deciding the case. If there is no response from the claimant, reminders will be issued. Still, if there is no response from the claimant, the claim will be decided on merits based on available documents by issuing a speaking order (Appealable O-in-O).
If the claim merits REJECTION on any ground/s, a speaking Order-in-Original (O-in-O) to this effect will be passed by AC/DC (Refunds) and dispatched to claimant against which the APPEAL lies with Commissioner of Customs (Appeals)
If the claim merits sanction and if the CLAIM VALUE < RS. 5 LAKHS, AC/DC (Refunds) issues O-in-O sanctioning the refund, after making disallowances, if any.
If the claim merits sanction and if the CLAIM VALUE > 5 LAKHS, the file will be sent to Internal Audit section for PRE-SANCTION CONCURRENCE. If there are any issues raised by audit, the same will be replied back or suitably taken into consideration and order will be passed by AC/DC (Refunds) sanctioning the refund after making disallowances, if any.
Order-in-Original sanctioning refund along with REFUND ORDER (indicating sanctioned amount and a blank pre-receipt form) will be dispatched to the claimant
On receipt of signed pre-receipt from the claimant, CHEQUE WILL BE ISSUED by AC/DC (Refunds). The same will be dispatched by RPAD or will be handed over to authorized person under due acknowledgement. (Refund cheque has to be signed by second signatory in case the claim value > Rs.10 lakhs.)
BILLS OF ENTRY WILL BE DEFACED with necessary endorsement (to the effect that refund was sanctioned vide O-in-O No…). In case of claims with value < Rs. 5 lakhs, after issue of cheque, the file will be sent to Internal Audit section for POST-SANCTION CONCURRENCE.