CMA Final · Indirect Tax Laws and Practice · Refund
A firm imported goods cleared for home consumption on 10 January under section 47. They were found non-conforming and it chose to destroy them before the proper officer. Which statement is correct under section 26A?
Destruction in the proper officer's presence must happen within 30 days of the home clearance order, extendable by the Commissioner for up to three months for sufficient cause. The six-month refund application period then runs from the date of destruction.
- ADestruction must occur within 30 days from 10 January, extendable by the Commissioner for up to three months on sufficient cause; the refund application is due within six months from the date of destructionCorrect
- BDestruction must occur within 60 days, with no extension, and the application is due within six months from 10 January
- CDestruction may occur at any time, but the application is due within one year of destruction
- DDestruction is not a permitted route, only export or abandonment qualifies
Explanation
Section 26A(1)(d)(iii) permits destruction before the proper officer within 30 days of the home clearance order, extendable on sufficient cause by up to three months. The relevant date for destruction is the date of destruction, and the application is due within six months of it. Option D ignores clause (iii).
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