CMA Final · Indirect Tax Laws and Practice · Duty Drawback
Goods imported under provisional assessment under Section 18 were provisionally assessed, and the importer paid provisional duty on 5 June 2025. The final assessment was completed on 20 January 2026. For the two-year period for entering the goods for export under Section 74, from which date does the period run?
The two-year period runs from 5 June 2025, because for goods provisionally assessed under Section 18, the date of payment of the provisional duty is deemed to be the date of payment of duty for Section 74. Final assessment or arrival dates do not matter.
- A5 June 2025, the date of payment of provisional dutyCorrect
- B20 January 2026, the date of final assessment
- CThe date of arrival of the goods in India
- DThe date the Board extends the period
Explanation
Section 74(4)(b) deems the date of payment of the provisional duty to be the date of payment of duty for goods assessed provisionally under section 18. So the two years run from 5 June 2025, not from final assessment.
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