20000130

Customs officers authorised to refund CED charged inadvertently

RECORDER REPORT

ISLAMABAD: The Ministry of Law, Justice and Human Rights has informed the Central Board of Revenue (CBR) that customs officers are authorised to order for the refund of import-related central excise duty (CED) charged through inadvertence, error or misconstructions where they are authorised to levy and collect CED, it was learnt on Saturday.

The board has informed all its central excise and customs Collectorates about the opinion of the Ministry of Law.

In a communication to the CBR, the ministry has explained that position adopted by the CBR that the customs officers are only authorised to levy and collect central excise duty and not to refund the levied and collected CED is not accordance with the provisions of the law, rules and the notification issued on June 14, 1995.

According to the notification, the customs officers are authorised to levy and collect CED and adjudicate and hear appeals.

The Ministry of Law referred to the Rule 11 of the Central Excise Rules of 1994 provides for refund of CED paid through inadvertence, error or misconstruction.

The ministry elaborated that in terms of section 2(8) of the Act of 1944, the term "central excise officer" has been defined as "any officer of the central excise department, or any person invested by the CBR with any of the powers of a central excise officer".

Since the customs officers have been invested with the powers as indicated in the said notification, they are covered by the term "central excise officer".

The ministry maintained that the only question left for examination is what is the effect of the absence and non-inclusion of the authority to order for "refund" in sub-para (b) of the notification. The absence and non-inclusion of the authority to order for refund does not legally prevent the customs officers to order for the refund of the CED, charged through inadvertence, error or misconstruction.

Conversely, sub-para (b) of the notification definitely includes the authority to refund.

The Ministry of Law further pointed out to the CBR that it is the customs officer who acts as central excise officer.