'SFIS scrip can be used for regularisation of default under the EPCG scheme'

Can we use our duty credit scrip issued under Served from India Scheme (SFIS) for regularisation of default under Export Promotion Capital goods (EPCG) scheme?
You can do so as per Para 3.17.11 of the Foreign Trade Policy, which says that "duty Credit Scrip can also be utilised/debited for payment of Custom Duties in case of EO defaults for Authorisations issued under Chapters 4 and 5 of this Policy". The Customs may, however, contend that, as per Para 12.1 of Chapter 23 of the Customs Manual 2013, "the usage of duty credit scrip is in relation to such goods which are allowed to be imported under the respective schemes." They may say that the SFIS allows import of capital goods/spares related to the service sector of the applicant and allow the debit only if that condition is met. As per Para 3.12.6 (a) of FTP, "service providers who are also engaged in manufacturing activity can use their SFIS scrip for importing/domestic sourcing of capital goods (as defined in para 9.12 of FTP) including spares related to the manufacturing sector business of the service provider. Such manufacturing sector business of the service provider would have to be endorsed on the SFIS scrip from relevant RA". So, if you get the necessary endorsement, you can use the SFIS scrip for regularisation of default against import of any machinery related to your manufacturing also.

What is the rate of interest payable by the government for delay in refund of customs duty, and since when is interest payable in case the refund becomes due after an order of the Tribunal?
As per notification no. 75/2003-Cus (NT) dated 12.09.2003, the rate of interest is 6 per cent per annum. As per Section 27A of the Customs Act, 1962 read with the explanation, the interest is due in case refund is not paid within three months from the date of the order of the Tribunal. Based on merits, in some cases, the courts have ordered payment of interest after three months from the date of filing refund application -- e.g., J.K. Cement Works [2004 (170) ELT 4 (Raj.], Aroma Chemicals [2013 (298) ELT 41 (All.)].

Our tax refund on service tax paid on a courier shipment has been rejected, saying it has not been proved that it is a time-sensitive shipment. Kindly give your views.

The precise context of rejection is not clear to me. Anyway, as per Section 65B (20) of the Finance Act, 1994, "courier agency" means any person engaged in the door-to-door transportation of time-sensitive documents, goods or articles utilising the services of a person, either directly or indirectly, to carry or accompany such documents, goods or articles. In the case of Professional Couriers vs CCE, Vishakapatnam [2008 (011) STR 031 (Tri. Bang.)], the Tribunal held that from the above definition, it is very clear that even other goods or articles are covered by "Courier Agency", and the same is not confined to only time-sensitive documents as contended by the appellants.

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