CMA Final · Indirect Tax Laws and Practice · Refund
Kavya Pharma imported a batch of goods and paid duty. The goods were found defective, and it claims a section 26A refund after destroying them in the presence of the proper officer within 30 days of the clearance order. Which fact would defeat the claim?
The claim fails if the goods are perishable or have exceeded their shelf life or recommended storage-before-use period, because section 26A(3) bars refund for them. The other facts, destruction within thirty days, no drawback claim and satisfactory identification, are conditions that are met.
- AThe goods were perishable, or had exceeded their shelf life or recommended storage-before-use periodCorrect
- BThe destruction took place on the 28th day after the clearance order
- CThe importer has not claimed drawback under any other provision of the Act
- DThe goods were identified to the satisfaction of the Deputy Commissioner as those imported
Explanation
Section 26A(3) bars refund for perishable goods and goods that have exceeded shelf life or recommended storage-before-use period. The 28-day destruction is within the 30-day window, non-claim of drawback is a condition satisfied, and identification to the officer's satisfaction is also required and met.
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