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CMA Final · Indirect Tax Laws and Practice · Refund

Delta Imports Ltd paid duty on goods cleared for home consumption under section 47 on 1 June. The goods are defective and identifiable. Delta wants to export them and claim refund under section 26A. Delta did not claim drawback. Which statement is correct?

Export must be done within thirty days from the section 47 clearance order of 1 June. On sufficient cause, the Principal Commissioner or Commissioner of Customs may extend this by a period not exceeding three months.

  1. AExport must occur within thirty days of 1 June, extendable on sufficient cause by the Commissioner of Customs by up to three monthsCorrect
  2. BExport must occur within six months of 1 June, with no extension
  3. CExport must occur within thirty days, and the Assistant Commissioner may extend it by one year
  4. DExport must occur within ninety days, extendable by the Board by six months

Explanation

Section 26A(1) requires export, abandonment or destruction within a period not exceeding thirty days from the clearance order under section 47. The first proviso allows extension for sufficient cause by the Principal Commissioner or Commissioner for a period not exceeding three months.

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