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

Garuda Auto Parts repaid under Rule 96B the refund relating to unrealised export proceeds. Two months after the repayment, the foreign buyer remitted the full amount, within the extended period permitted by the RBI. Which statement is correct?

The recovered amount is refunded to the extent of realisation, provided the applicant produces evidence within three months from the date of realisation and the proceeds came in within the period permitted by the RBI. It is not forfeited, and RBI write-off is not required.

  1. AThe recovered amount is refunded to the extent of realisation if evidence is produced within three months from the date of realisationCorrect
  2. BThe recovered amount is forfeited because it was repaid once
  3. CThe refund is available only if the RBI writes off the requirement
  4. DThe recovered amount is refunded only if evidence is produced within thirty days of the repayment

Explanation

Rule 96B(2) allows the proper officer to refund the recovered amount to the extent of realisation where the applicant produces evidence of realisation within three months from the date of realisation, provided realisation was within the RBI-permitted extended period. Forfeiture is not provided, and the write-off proviso is a different situation.

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