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CA Final · Indirect Tax Laws · Import and Export Under GST

Alpha Gems Ltd got a refund on export of goods and did not realise the sale proceeds within the FEMA period. The refund was then recovered from it under Rule 96B(1). Later it realises the proceeds and wants the recovered amount back. Which is correct under Rule 96B(2)?

The recovered amount is refunded by the proper officer to the extent of realisation, provided the exporter produces evidence of realisation within three months of the realisation date and the proceeds were realised within the extended period permitted by RBI, as Rule 96B(2) provides.

  1. AThe proper officer refunds the amount to the extent of realisation if evidence is produced within three months of realisation and realisation was within the period permitted by RBICorrect
  2. BNo refund is possible once recovery has been made
  3. CRefund is allowed if evidence is produced within thirty days of realisation, irrespective of RBI period
  4. DRefund is allowed only if the RBI writes off the requirement

Explanation

Rule 96B(2) allows the proper officer to refund the recovered amount to the extent of realisation, if the applicant produces evidence within three months from the date of realisation, and the proceeds were realised within the extended period permitted by RBI. The write-off in the proviso to sub-rule (1) is a different situation, where recovery itself is not made.

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