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CA Final · Indirect Tax Laws · Levy of and Exemptions from Customs Duty

A group of importers had for years paid a lower duty on a product because customs ports generally followed a prevalent practice, though the goods were actually liable to higher duty. The Central Government is satisfied of this and issues a notification under section 28A(1). Duty paid earlier in excess of that payable under the practice is claimed as refund by Nanda Imports. By when must Nanda apply to the Assistant or Deputy Commissioner of Customs?

Nanda must apply within six months from the date of issue of the notification. Section 28A(2) routes the refund through section 27(2), but its proviso requires the application to the Assistant or Deputy Commissioner before six months from the notification lapse.

  1. AWithin one year from the date of payment of duty
  2. BWithin six months from the date of issue of the notificationCorrect
  3. CWithin three months from the date of the bill of entry
  4. DWithin sixty days from the date of the notification

Explanation

Section 28A(2) treats such refund under section 27(2), subject to the proviso that the application in the prescribed form be made before expiry of six months from the date of issue of the notification. The other periods are not in the provision.

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