CA Final · Indirect Tax Laws · Refund
Kaveri Engineering imported a machine and paid duty on clearance for home consumption. The proper officer made the order for clearance under section 47 on 1 March. The machine was found not conforming to agreed specifications, was unused and identifiable, and no drawback was claimed. Kaveri wants to export it back. By when must the goods be exported without any extension, and what is the maximum extension possible on sufficient cause?
The goods must be exported within thirty days of the order for clearance for home consumption. On sufficient cause, the Principal Commissioner or Commissioner of Customs may extend this by up to three months. The six-month limit applies only to filing the refund application.
- AWithin 30 days of the clearance order; extension up to 3 months by the Principal Commissioner or CommissionerCorrect
- BWithin 60 days of the clearance order; extension up to 3 months
- CWithin 30 days of the clearance order; extension up to 6 months
- DWithin 6 months of the clearance order; no extension is possible
Explanation
Section 26A(1) requires export, relinquishment or destruction within a period not exceeding thirty days from the section 47 clearance order. On sufficient cause this may be extended by the Principal Commissioner or Commissioner of Customs for a period not exceeding three months. Six months is the period for filing the refund application, not for exporting.
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