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

For years, importers of a chemical at Mundra paid no duty because of a generally prevalent practice, though the goods were actually dutiable. The Central Government, satisfied about the practice, issued a notification under section 28A(1) on 1 March directing that duty not be required. Vikram Chemicals Ltd had paid duty on identical goods earlier and wants a refund of the duty that would not have been paid had the notification been in force. What is the condition for the refund under section 28A(2)?

The refund requires an application in the section 27(1) form to the Assistant or Deputy Commissioner of Customs before six months expire from the date the notification was issued. The refund is dealt with under section 27(2), and the period runs from the notification, not from payment.

  1. AApplication to the Assistant or Deputy Commissioner of Customs in the prescribed form within six months from the date of issue of the notificationCorrect
  2. BApplication within one year from the date of payment of duty
  3. CNo application is needed; the refund is automatic upon notification
  4. DApplication to the Central Government within three years from the date of the notification

Explanation

Section 28A(2) says such duty is dealt with under section 27(2), provided the claimant applies to the Assistant Commissioner or Deputy Commissioner of Customs in the form under section 27(1) before the expiry of six months from the date of issue of the notification. Hence the six-month window runs from 1 March, not from payment.

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