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CMA Final · Indirect Tax Laws and Practice · Refund

Kavya Imports abandoned defective, non-conforming goods to customs, relinquishing title on 10 April. The clearance order for exports (if any) was not relevant. Under section 26A(2), the refund application must be made before the expiry of six months from which date?

Where the importer relinquishes title and abandons goods to customs, the relevant date for the six-month refund application period under section 26A(2) is the date of relinquishment of title, here 10 April.

  1. AThe date of payment of duty on the goods
  2. BThe date of the order of clearance for home consumption
  3. CThe date of relinquishment of title, 10 AprilCorrect
  4. DThe date on which the defect was discovered

Explanation

The Explanation to section 26A(2) defines relevant date: for export, the date of the order permitting clearance and loading under section 51; for relinquishment, the date of relinquishment; for destruction, the date of destruction. Here title was relinquished on 10 April, so six months run from then.

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