Service Tax Excise Rebate/Refund to be paid directly to the bank account under electronic clearing system through RTGS/NEFT

OFFICE OF THE COMMISSIONER OF CENTRAL EXCISE, CUSTOMS & SERVICE TAX

C.R.BUILDING, I.S.PRESS ROAD, C0CHIN·682018

TRADE NOTICE  NO. 04/2014 ST                                                                             Dated:- 29.07.2014

Sub:-Payment of sanctioned Rebate/ Refund to the Service  Provider/ Manufacturer under electronic clearing system through RTGS/NEFT facility- Instructions- Reg.

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 w.e.f.16.08.2014.

(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.

The hindi version follows

(Issued from file C. No. IV/16/08/2014-S.T)

RESHMA  LAKHANI

COMMISSIONER

Annexure-A and Annexure-B Click Here >>