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Refunds Under Central Excise & Service Tax–Only by ECS (NEFT/ RTGS)–Accounts Payee Cheque Scrapped

September 13, 2018

CLARIFICATION ON PAYMENT OF SANCTIONED REBATE/REFUND TO SERVICE PROVIDER/MANUFACTURER UNDER ELECTRONIC CLEARING SYSTEM THROUGH RTGS/NEFT FACILITY

TRADE NOTICE NO.4/2014-ST[F.C.NO.IV/16/08/2014-S.T],DATED 29-7-2014

The present system of issuing account payee cheques to the refund/rebate claimants under Service Tax and Central Excise on sanction is cumbersome and entails paper work. Besides monitoring of cheque returns owing to clerical errors and incomplete information etc. results in considerable delay in settlement.

In order to alleviate such problems, it has been decided, henceforth to mandatorily credit the sanctioned amounts as the case may be to the claimant’s bank account by way of RTGS/NEFT facility under Electronic Clearing System (ECS) system offered by the Commercial Banks.

The following procedure is prescribed to be adhered by the claimants and the Sanctioning Authorities for this purpose with effect from 16-8-2014.

(i)		The claimants shall invariably furnish along with their refund/rebate claims the details of their banks account/s in the format attached as annexure A, duly authenticated by the concerned bank authorities to the jurisdictional Assistant/Deputy Commissioner of Central Excise as the case may be, for credit of the sanctioned amount.
(ii)		In cases of pending refund/rebate claims where refund/rebate has not been paid yet as well, the payment will/should be effected through RTGS/NEFT facility under Electronic Clearing System. For this purpose as well, the details of bank account/s of the claimant duly authenticated by the bank authorities should be furnished/obtained.
(iii)		All the jurisdictional Assistant/Deputy Commissioners have been authorized to order for payment of sanctioned refund/rebate amount under ECS through RTGS/NEFT facility with immediate effect. For this purpose the jurisdictional Assistant/Deputy Commissioners shall submit a list of sanctioned refund/rebate claims in the form annexure ‘B'(attached) by e-mail to the concerned bank along with a cheque for the consolidated sanctioned amounts. The bank after verification of the relevant details shall credit the sanctioned amount to the respective beneficiaries mentioned in annexure ‘B’ form.
(iv)		It is further clarified that the banks may load the beneficiaries, the service charges if any, for crediting the amount through RTGS/NEFT from their respective sanctioned amount.
(v)		All the trade associations are requested to bring the contents of this Trade Notice to the attention of their members in particular and the trade in general.

ANNEXURE-A

BANK ACCOUNT DETAILS OF THE ASSESSEE TO WHICH THE SANCTIONED REFUND/REBATE AMOUNT IS TO BE DEPOSITED.

1.	Applicant’s firm details
	Address. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	Telephone No: . . . . . . . . .. . . . . . . . . . . .. . Mob No: . . . . . . . . .. . . . . . . . . . . .. .
	Email id: . . . . . . . . . . . . . . . . Fax No:.. . . . . . . . . . . . . . . . . .
	Central Excise/Service Tax Regn. No: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.	Bank Particulars
	Name of the Bank	:	. . . . . . . . . . . . . . . . . . . . . . . . .
	Branch Address	:	. . . . . . . . . . . . . . . . . . . . . . . . .
			. . . . . . . . . . . . . . . . . . . . . . . . .
	Bank Account number	:	. . . . . . . . . . . . . . . . . . . . . . . . .
	IFSC Code	:	. . . . . . . . . . . . . . . . . . . . . . . . .
	MICR Code	:	. . . . . . . . . . . . . . . . . . . . . . . . .
	Type of Bank Account	:	. . . . . . . . . . . . . . . . . . . . . . . . .

I/we certify that the information furnished above is true and correct to the best of my/our knowledge land belief. I/we fully understand that any information furnished in the application if found incorrect or false will render me/us liable for any penal action or other consequences as may be prescribed in law or otherwise warranted.