CA Final · Indirect Tax Laws · Refund
Anand Pharma imported a consignment, paid duty, and found it not in conformity with agreed specifications. The goods were exported back on 20 July, being the date on which the proper officer made the order permitting clearance and loading under section 51. Another part of the same consignment was destroyed in the presence of the proper officer on 5 August. Under section 26A(2), by when must the refund application for the exported part be filed?
The application for the exported part must be filed within six months from 20 July. Under section 26A, for exported goods the relevant date is when the proper officer orders clearance and loading for export under section 51. The destruction date applies only to the destroyed goods.
- ASix months from 20 JulyCorrect
- BSix months from 5 August
- CSix months from the date of payment of duty
- DOne year from 20 July
Explanation
Section 26A(2) requires application within six months from the relevant date. For exported goods, the relevant date is the date of the section 51 order permitting clearance and loading, here 20 July. The destruction date of 5 August applies only to the destroyed part, so option B is wrong for the exported part.
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