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CA Final · Indirect Tax Laws · Importation and Exportation of Goods

Arjun Traders imported identifiable goods and paid provisional duty on 1 April 2025 under section 18 assessment; final assessment was completed on 1 September 2025. For counting the two-year period for drawback on re-export, which date is treated as the date of payment of duty?

The two-year period is counted from 1 April 2025. For goods assessed provisionally, the date of payment of the provisional duty is deemed the date of payment of duty for drawback purposes, not the later date of final assessment.

  1. A1 April 2025, the date of payment of provisional dutyCorrect
  2. B1 September 2025, the date of final assessment
  3. CThe date of arrival of the vessel
  4. DThe date of the export order

Explanation

Section 74(4)(b) says that for goods assessed provisionally, the date of payment of the provisional duty is deemed to be the date of payment of duty. So the two years run from 1 April 2025, not the final assessment date.

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