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Ministry of Finance Updates Authorized Banks List for Customs effective from April 01, 2024

editor — Tue, 07 May 2024 10:24:11 +0000

Introduction to the Ministry of Finance Update

In the realm of international trade and commerce, the efficient processing of customs procedures is paramount. To facilitate smoother transactions, the Ministry of Finance regularly updates its list of authorized banks for customs purposes. One such recent update comes in the form of Notification No. 25/2024 – Customs, which brings significant amendments to the existing framework.

Details of Notification No. 25/2024 – Customs

Issued on May 06, 2024, Notification No. 25/2024 – Customs serves as a pivotal document outlining the alterations made to Notification No. 50/2017-Customs, originally dated June 30, 2017. These amendments primarily focus on updating Lists 34A and 34B, crucial compilations enumerating banks recognized for customs-related activities.

Changes in Lists 34A and 34B

List 34A, effective from April 01, 2024, encompasses a selection of banks authorized for customs operations. Noteworthy inclusions feature prominent institutions such as Axis Bank Limited, HDFC Bank Limited, and the State Bank of India, among others. Conversely, List 34B, also effective from April 01, 2024, introduces additional entities like Indian Overseas Bank and Punjab National Bank into the fold.

Authorized Banks List for Customs

The comprehensive enumeration within List 34A comprises a diverse array of financial institutions, ranging from private entities like Kotak Mahindra Bank Limited to multinational giants like Industrial and Commercial Bank of China Limited. Similarly, List 34B adds to this spectrum with the incorporation of esteemed names like Union Bank of India and Indian Overseas Bank.

Implications of the Update

These updates bear significant implications for customs proceedings, ensuring that businesses engage exclusively with authorized banking channels. Such adherence not only fosters regulatory compliance but also streamlines financial transactions, fostering efficiency and transparency within the customs domain.

Accessing the Notification

For stakeholders seeking detailed insights into the revised banking landscape, accessing Notification No. 25/2024 – Customs is imperative. The document, available for reference here, provides a comprehensive overview of the regulatory amendments enacted by the Ministry of Finance.

Entitlement to Interest Commences After Sixty Days from Refund Application Until Credited to Bank Account

editor — Sat, 06 Apr 2024 05:35:52 +0000

In a significant ruling by the Hon’ble Delhi High Court, Raghav Ventures vs. Commissioner of Delhi [W.P.(C) NO. 12209 OF 2023 dated March 01, 2024], the issue of entitlement to interest on delayed GST refunds was examined. The case sheds light on the statutory provisions and clarifications regarding the payment of interest under the Central Goods and Services Tax Act (“the CGST Act”).

Facts of the Case:

M/s Raghav Ventures ("the Petitioner") engaged in exporting mobile phones and accessories to M/s AZ Logistic, Dubai, UAE, thereby paying Integrated Goods and Services Tax ("IGST").
During the Impugned Period (December 2022, February 2023, March 2023, and May 2023), the Petitioner paid IGST totaling significant amounts i.e. Rs. 1,63,16,851/-, Rs. 50,46,889/-, Rs. 17,26,288/-, and Rs. 13,85,382/-, respectively.
The Petitioner filed refund applications for the IGST paid during the Impugned Periods in accordance with the prescribed procedure under the CGST rules.
Despite receiving acknowledgments for the refund applications, the refunds were not processed within the stipulated time frame.
The IGST refunds were eventually sanctioned and credited into the Petitioner's bank account but without any accompanying interest.
The Petitioner subsequently filed an application to the Revenue Department seeking interest on the delayed refunds.

Issue:

Whether the Petitioner is entitled to interest on the delayed refund of IGST as per statutory provisions?

Held:

The Hon’ble Delhi High Court, in the Writ Petition (C) NO. 12209 OF 2023, held the following:

Interest becomes payable under Section 56 of the CGST Act if the refund ordered under Section 54(5) is not processed within 60 days from the date of the refund application.
The payment of interest under Section 56 is a statutory provision and does not rely on any claim made by the assessee.
Circular No. 125/44/2019-GST dated November 18, 2019, clarifies that interest accrues from the date immediately after the expiry of sixty days from the date of the refund application until the amount is credited to the applicant's bank account.
Consequently, the Petitioner is entitled to statutory interest at the rate of 6% from the date following the expiry of sixty days from the date of the refund application until the refund is credited to the bank account.
The Court directed the Revenue Department to process the refund of interest and credit the same into the Petitioner's account within four weeks.

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Ministry of Finance Updates Authorized Banks List for Customs effective from April 01, 2024

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Entitlement to Interest Commences After Sixty Days from Refund Application Until Credited to Bank Account

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