Central Excise Circular No. 857/15/2007-CX dated
02.11.2007Procedure relating to sanction and pre-audit of refund/ rebate claims
I am directed to invite your attention to Board’s circular
No. 809/6/2005-CX dated 01.03.2005, wherein the procedure relating to sanction
and pre-audit of refund/rebate claims has been prescribed. It has been brought
to the notice of the Board that various court judgments have held that the
procedure of pre-audit before sanction of refund amounts to interference with
the quasi-judicial function of the refund sanctioning authority. References have
also been received from the field formations in this regard.
2. The matter has been examined. Pre-audit of refund and rebate claims serves
the twin purpose of ensuring uniformity in procedure and enables effective
monitoring of sanction of refund/rebate claims. Therefore, this procedure cannot
be dispensed with. However, in view of the observations of the Hon’ble Courts,
it has been decided that pre-audit of all refund/rebate claims will be conducted
by the Assistant/Deputy Commissioner (Audit), in the Commissionerate
Headquarters Office. Thereafter, the Divisional Assistant/Deputy Commissioner
will pass an order-in-original in respect of the claim. Accordingly, the present
system of pre-audit of claims by Commissioner would henceforth be dispensed
with. However, the orders-in-original passed in this regard shall be subjected
to review by the Commissioner.
3. The relevant portions of circular No. 809/06/2005-CX dated 01.03.2005 stand
amended as discussed above.
4. The field formations may be suitably informed.
5. Hindi version will follow.
Under Secretary to the Government of India
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