Filing SED refund claims: FBR allows condonation of delay

The Federal Board of Revenue (FBR) has allowed condonation of delay in filing special excise duty (SED) refund claims beyond the prescribed period of 90 days to expedite the processing of the SED claims encompassing a large number of registered persons.
Sources told Business Recorder here on Monday that the FBR has issued a federal excise general order (FEGO) 1 of 2012 on the condonation of time limit under section 43 of the Federal Excise Act 2005. According to the general order, a number of applications were received by the Board for condonation of the delay in filing of the SED refund claims beyond the prescribed time limit as required under section 44 of the Federal Excise Act.
The processing of these applications has led to unnecessary involvement of the Board in operational matters besides creating hardship for taxpayers. In order to mitigate the hardships of taxpayers, the Board, in exercise of the powers conferred by section 43 of the Federal Excise Act 2005 read with Rule 78 of the Federal Excise Rules 2005 has condoned the delay in filing of refund claim of the SED beyond the prescribed period for 90 days from the date of this FEGO subject to the following conditions:
Firstly, the invoice relating to the transaction contains the full and correct name, address and registration number of both the supplier and the buyer besides other particulars specified in the section 18 of the Federal Excise Act. Secondly, the amount of tax involved has been paid. Thirdly, the transaction does not involve any closed, de-registered or blacklisted/suspected registered person. Fourthly, no case of tax fraud has been made against the buyer or the seller. Fifthly, all other provisions of the Sales Tax Act, 1990 and Federal Excise Act 2005, as far as applicable have been fulfilled.
By means of this FEGO, all cases of delay stand condoned automatically provided the above mentioned conditions have been fulfilled. The permission of filing refund claims in the light of said condonation shall not be treated as a right to any input tax adjustment/refund which has to be determined by the field formation after pre-refund audit/scrutiny of the claims in accordance with the provisions of the Sales Tax Act 1990, the Federal Excise Act 2005 and Rules/Instructions of the Board issued from time to time as far as applicable, FBR added.