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CA Final · Indirect Tax Laws · Refund

Kaveri Traders of Chennai imported 100 units of a machine and paid import duty on clearance for home consumption. Order for clearance under section 47 was made on 1 March. The units were found not to conform to the agreed specifications and were not used. Kaveri exported them, and the proper officer permitted clearance and loading for exportation under section 51 on 20 March. By which date must Kaveri apply for refund under Section 26A?

Kaveri must apply by 20 September. Section 26A(2) allows six months from the relevant date, and for exported goods the relevant date is the date of the order permitting clearance and loading for exportation under section 51, which is 20 March.

  1. A30 March, being thirty days from the clearance order
  2. B20 September, being six months from 20 MarchCorrect
  3. C1 September, being six months from 1 March
  4. D20 June, being three months from 20 March

Explanation

Under Section 26A(2), the application must be made within six months from the relevant date. Where goods are exported, the relevant date is the date of the order permitting clearance and loading for exportation under section 51, here 20 March. Six months from that gives 20 September. The thirty-day period governs the export itself, not the application, and it is measured from the section 47 order.

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