Section 23: Refunds

23. Refunds (1) Where goods have been damaged, pilfered, lost or destroyed during the voyage or duty or excise duty has been paid through an error of fact or erroneous construction of the law or where any goods have been ordered to be destroyed as being unfit for consumption, the Director-General, on request, may refund or adjust the amount of duty or excise duty payable accordingly. (1A) Where goods have been cleared from Customs and are found to be defective, obsolete or not according to specifications and are returned to the seller, the Director-General may, on request, refund the amount of duty or excise duty originally paid on such conditions as may be prescribed. (2) Where, in the case of a provisional entry, any sum paid by the person under section 37 of this Act is in excess of the correct amount of duty, a refund shall be made. (3) Where any duty, excise duty or charge has been paid and repayment of such duty, excise duty or any portion thereof, is claimed by the person on the ground that the duty, excise duty or charge was paid under an erroneous construction of the law or by other error, no repayment of such duty and excise duty or charge, or any portion thereof, shall be made by the Director-General where such claim is made after 3 years from the date of the payment. (3A) No claim or refund of duty and excise duty shall be made where the amount is less than 250 rupees or such other amount as may be prescribed. (4) Where a claim for refund of duty or excise duty is made and the Director-General is not satisfied that the person is entitled to a refund, he shall, give written notice to the person of his decision. (5) (a) Where the person is dissatisfied with a decision of the DirectorGeneral under subsection (4), the person may, within 28 days of the date of the decision, object to the decision in a form approved by the DirectorGeneral and send the form duly filled in to the Director-General by registered post. (b) Where a person makes an objection under paragraph (a), he shall specify, in the form, the detailed grounds of the objection. (c) Where it is proved to the satisfaction of the Director-General that, due to illness or other reasonable cause, a person has been prevented from making an objection within the time limit specified in paragraph (a), the Director-General may consider the objection. (ca) Where the Director-General refuses to consider an objection made after the time limit specified in paragraph (a), he shall, within 28 days of the date of receipt of the letter of objection, give notice of the refusal to the person. (d) Any objection under this subsection shall be dealt with independently by an objection directorate. [Issue 9] C62 – 24 Revised Laws of Mauritius (e) The burden of proving that the decision of the Director-General is incorrect, or what the decision should be, shall lie on the person. (6) (a) The objection directorate shall consider an objection under subsection (5) and review the decision, and may— (i) disallow or allow it in whole or in part; and (ii) where appropriate, amend the decision to conform with its determination. continued on page C62 – 25 C62 –24 (1) [Issue 9] objection directorate. [Issue 9] C62 – 24 Revised Laws of Mauritius (e) The burden of proving that the decision of the Director-General is incorrect, or what the decision should be, shall lie on the person. (6) (a) The objection directorate shall consider an objection under subsection (5) and review the decision, and may— (i) disallow or allow it in whole or in part; and (ii) where appropriate, amend the decision to conform with its determination. continued on page C62 – 25 C62 –24 (1) [Issue 9] Revised Laws of Mauritius (b) The Director-General shall, within 4 months of the date of receipt of the objection under subsection (5), give notice of the determination to the person. (c) Where the objection is not determined within 4 months under paragraph (b), it shall be considered to have been allowed by the DirectorGeneral. (7) Where a person is aggrieved by a decision under subsection (5) (ca) or a determination under subsection (6), he may, within 28 days of the date of the determination, lodge written representations with the Clerk to the Assessment Review Committee in accordance with section 19 of the Mauritius Revenue Authority Act. (8) Where, as a result of the determination of an objection under subsection (6), the person is entitled to a refund, the Director-General shall, subject to subsection (7), refund the amount of duty or excise duty at the time the notice of determination is given under subsection (6) (b). (9) Any refund under this section shall carry interest, free of income tax, at the prevailing Repo rate determined by the Bank of Mauritius. [S. 23 amended by s. 3 of Act 2 of 1991 w.e.f. 1 July 1991; s. 4 (c) of Act 23 of 2001 w.e.f. 11 August 2001; s. 27 (3) (h) of Act 33 of 2004 w.e.f. 1 July 2006; s. 8 (e) of Act 15 of 2006 w.e.f. 7 August 2006; s. 5 (i) of Act 26 of 2012 w.e.f. 1 January 2013; s. 4 (f) of Act 26 of 2013 w.e.f. 21 December 2013; s. 12 (i) of Act 9 of 2015 w.e.f. 14 May 2015.]