CA Final · Indirect Tax Laws · Refund
Kaveri Traders imported 100 laptops and paid import duty on clearance for home consumption. On inspection, 20 laptops were found not in conformity with the agreed specifications, were unused and identifiable. The proper officer's order for clearance under section 47 was dated 1 June. Kaveri chose to destroy the 20 laptops in the presence of the proper officer on 20 June. No drawback was claimed. Which statement is correct for the refund claim under section 26A?
Refund is available because destruction before the proper officer within 30 days of the clearance order is permitted. The application must be filed within six months from the date of destruction, 20 June, and drawback must not be claimed.
- ARefund is barred because destruction is not a permitted option and only export is allowed
- BRefund is allowed only if the importer also claims drawback on the goods
- CRefund is allowed only if the destruction occurred after 30 days from clearance
- DRefund is available if the application is made within six months from 20 June, the date of destructionCorrect
Explanation
Section 26A allows refund where non-conforming, identifiable goods are exported, abandoned or destroyed in the presence of the proper officer within 30 days of the clearance order. Destruction on 20 June falls within 30 days. The application must be made within six months from the relevant date, which for destruction is the date of destruction. Drawback must not be claimed.
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