SME Chatroom: HS Code error in bill of entry can be amended after clearance

Here's how to claim a refund of the excess duty paid

Q. During our internal audit, we discovered that we had mentioned the wrong HS Code in the bill of entry and ended up paying excess duty. Can we claim a refund of the excess duty paid?

Yes. First, you have to get the bill of entry amended and reassessed. In this connection, please refer to the case of Dimension Data India Pvt. Ltd. [2021(376) ELT 376 (Bom.)], wherein the Bombay High Court directed the Customs to consider the prayer of the petitioner for amendment of the HS Codes in various bills of entry by exercising power under Section 149, read with Section 154 of the Customs Act, 1962, and thereafter pass an appropriate order under Section 17(4) of the Customs Act, 1962, after giving an opportunity of hearing to the petitioner. Once you get the bill of entry amended and re-assessed, you can file an application for refund of excess duty.

Q. What is the time limit for claiming RoSCTL benefits against exports made since January 1, 2021?

RoSCTL credit is given in the form of transferable duty credit in the electronic duty credit ledger of the exporter in the Customs automated system. For exports made from January 1, 2021, until the Customs system was enabled to claim the RoSTL benefit in October 2021, the credit is given on the basis of the exporter’s declaration on the shipping bill regarding claim for RoDTEP and duty drawback.

Thereafter, credit is given against the prescribed declaration given on the shipping bill by the exporter and processing by the Customs on the basis of risk evaluation, as per CBIC Circular no.15/2021-Cus dated July 15, 2021, for implementation of Risk Management System for drawback claims. So, there is no need to file a separate application for RoSCTL and consequently, there is no question of time limit. In this regard, please see MF(DR) Circular no.22/2021-Cus dated September 30, 2021.

Q. We refer to your Q&A of December 28, 2021, regarding SIMS registration for re-import of gas cylinders for refilling gases. Now, the DGFT has issued Circular no.38/2015-20 dated January 19, 2022, regarding exemption from SIMS registration for re-import of goods falling under HS Codes of Chapter 72, 73 and 86 for packaging purposes. Does this apply to our case also?

Yes. The said Circular says that re-import of steel for packaging purposes will not be covered under SIMS, as it is primarily not meant for value addition, rather being imported for packaging only.

Q. Kindly clarify whether the basis for taking input tax credit (ITC) from now on is GSTR-2A or GSTR-2B.

In my opinion, Sec. 16(2)(aa) of the CGST Act, 2017, read with Rule 36(4) of CGST Rules, 2017, suggests that ITC on the qualifying inward supplies can be availed of only if the said supplies are reflected in GSTR 2B (of the month in question, or even any preceding tax period). Hence GSTR 2B should be the default basis for determining the availability of ITC. 

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