CA Final · Indirect Tax Laws · Refund
Kaveri Traders imported a consignment of electronic sensors and paid import duty on clearance for home consumption. On inspection, the sensors were found not to conform to the specifications agreed with the foreign supplier. The goods are easily identifiable and were not used or repaired after import. The importer does not claim drawback. The importer decides to re-export the goods. The proper officer permitted clearance and loading for export on 20 June. By which date must the refund application under section 26A be made?
The application must be made within six months from 20 June, the date the proper officer permitted clearance and loading for export. For exported goods that date is the relevant date under section 26A. The home consumption clearance date only governs the thirty-day period for completing the export.
- ASix months from 20 JuneCorrect
- BSix months from the date of the order for home consumption clearance
- CThirty days from 20 June
- DOne year from 20 June
Explanation
Under section 26A(2), the refund application must be made before six months expire from the relevant date. Where goods are exported, the relevant date is the date of the proper officer's order permitting clearance and loading for exportation under section 51, here 20 June. The date of the home consumption order only starts the 30-day window for completing export, abandonment or destruction, so option B is wrong.
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