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Indirect Tax Alert - Customs: Special refund and drawback disposal drive from 15 May 2021 to 31 May 2021

18 May 2021

  • Last year, difficulties of liquidity during COVID-19 were sought to be ameliorated by having a special drive from 08 April 2020 to 30 April 2020 for priority disposal of pending Customs refund, IGST refund and customs duty drawback claims.
  • This special drive was governed by instructions no:03/2020-customs and no:2/1/2020-GST, both dated 09 April 2020;
  • Continuing with the aforementioned trade facilitation measures, CBIC has decided that there is a need to focus on timely disposal of all pending refund/duty drawback claims in order to provide immediate relief to the business entities, especially MSMEs, in these difficult times.
  • Accordingly, it is hereby instructed that there shall be a “special refund and drawback disposal drive” with the objective of priority processing and disposal of all pending refund and drawback claims.
  • This special drive shall be in place from 15 May 2021 to 31 May 2021. It is expected that during this period all refund and drawback claims that are pending as on 14 May 2021 shall be disposed.
  • In this regard, the following may be taken note of:
    • Though the decision to process pending refund claims has been taken with a view to provide immediate relief to the taxpayers, due diligence is to be done before granting the refunds and drawback. All the relevant legal provisions, notifications, circulars and instructions must be followed while processing these claims.
    • For facilitation of exporters, all communication should be done over email, wherever email id of the applicant is available.
    • All deficiency memos may be reviewed, and refund / drawback may be considered on merit.
    • The special drive should be widely publicised.

[Instruction no:10/2021-Customs dated 13 May 2021]