Processing of refund claim [Section 27(2)] :

The application of refund found to be complete in all respects by Customs, is processed to see if the whole or any part of the duty and interest paid by the applicant is refundable. In case the whole or any part of the duty and interest is found to be refundable, an order for refund is passed. However, in view of the provisions of unjust enrichment enshrined in the Customs Act, the amount found refundable has to be transferred/credited to the Consumer Welfare Fund. Only in following situations, the amount of duty and interest found refundable, instead of being credited to the Consumer Welfare Fund, is to be paid to the applicant:

(a) if the importer has not passed on the incidence of such duty and interest to any other person;

(b) if imports were made by an individual for his personal use;

(c) if the buyer who has borne the duty and interest, has not passed on the incidence of such duty and interest to any other person;

(d) if amount found refundable relates to export duty paid on goods which has returned to exporter as specified in section 26;

(e) if amount relates to drawback of duty payable under section 74 and 75;

(f) if the duty or interest was borne by a class of applicants which has been notified for such purpose in the Official Gazette by the Central Government.